Accenture PLC (NYSE:ACN)

Payables turnover

The payables turnover ratio data begins from November 30, 2019, showing a general downward trend from 22.48 at the start to lower values around 16.37 to 16.93 in late 2022. It demonstrates some fluctuation, increasing again to a peak of 19.54 in early 2024, then declining and stabilizing near 17.3 towards mid-2025. This pattern signifies that the company initially paid its suppliers more frequently but experienced slower payments after the initial period, with some rebounds in turnover indicating periods of faster payments intermittently.

Working capital turnover

The working capital turnover ratio also starts from November 30, 2019, reflecting moderate values around 7.7 to 8.7 initially. A sharp increase is observed beginning in late 2020, peaking significantly at 34.49 by November 2024. Following this peak, the ratio declines steeply again to levels near 8 by mid-2025. Such a pattern signals a marked temporary improvement in the efficiency of using working capital to generate revenue during this period, with a return to earlier efficiency levels later.

Average payables payment period

The average payable payment period shows a fairly stable and narrow range, fluctuating mostly between 16 and 24 days. An increasing trend from 16 days in late 2019 to 24 days by November 2020 is visible, after which it oscillates around 21 to 22 days with minor variations. Some decreases occur around early 2024 with a drop to 19 days followed by a return to around 21 days. This suggests a general consistency in the number of days taken to pay suppliers, with a short-term extension during 2020 and some minor variability afterward.

Overall insights

The payables turnover and average payment period data together indicate periods of both faster and slower payments to suppliers, reflecting changes in liquidity management or payment policies. The significant spike and subsequent decline in working capital turnover suggest transient changes in asset utilization or operational efficiency during the period. The company's ability to manage payables and working capital shows periods of efficiency enhancements followed by normalization, likely corresponding to operational or market conditions affecting cash flows and short-term financial management.

The analysis of the financial data reveals several notable trends in the company's operational and liquidity metrics over the reported quarters.

Cost of Services

The cost of services showed an initial moderate fluctuation from late 2019 through early 2021, with values ranging between approximately 7.4 billion and 8.5 billion USD. A significant upward trend is observed starting in late 2021, with costs consistently rising toward the higher end of the spectrum, reaching values above 11 billion USD by early 2025. This indicates increased expenditures related to service delivery, possibly reflecting growth in operational scale, inflationary pressures, or changes in the company's service portfolio.

Accounts Payable

Accounts payable exhibited some variability, with amounts generally increasing from about 1.3 billion USD in mid-2020 to crossing above 2.5 billion USD by late 2022 and early 2023. Thereafter, it peaked near 2.7 billion USD and displayed cyclical movements, with periodic declines and rebounds. This pattern suggests tight management of short-term liabilities, potentially aligned with cash flow optimization strategies and supplier payment terms.

Payables Turnover Ratio

The payables turnover ratio, available from mid-2020 onwards, shows a declining trend from 22.48 to a low near 15.03, followed by fluctuations within the 15 to 19 range in subsequent quarters. The initial decline suggests an elongation of the payment cycle or slower turnover of payables early in the period. The later volatility may indicate adjustments in payment practices or varying operational conditions influencing the rate at which payable accounts are settled.

Collectively, these data points suggest that while the company has experienced rising costs associated with services, it has managed its accounts payable with an approach that balances payment timing with operational needs. The decreasing then fluctuating payables turnover ratio aligns with strategic management of working capital amid an evolving business environment.

Working Capital

The working capital figures exhibit considerable fluctuations over the periods analyzed. Initially, working capital shows an increasing trend from November 2019 to November 2020, rising from approximately 4.4 billion USD to nearly 5.8 billion USD. This upward trend is followed by some volatility, with a marked decline occurring around November 2021 to August 2024, where working capital decreases significantly from approximately 3.4 billion USD to around 1.9 billion USD. However, notable recovery is observed toward the last few periods, with an increase peaking at about 8.6 billion USD by May 2025 before slightly declining again in August 2025.

Revenues

Revenues display a generally upward trajectory across the timeline. Starting near 11.4 billion USD in November 2019, the revenue trend shows steady growth with occasional minor declines. Peaks are observed in May 2022 and November 2024, exceeding 17.6 billion USD. Despite small fluctuations, the revenue growth suggests strong overall performance with resilience through different periods.

Working Capital Turnover Ratio

The working capital turnover ratio demonstrates increased efficiency in utilizing working capital over time. From an initial level around 8.7 in May 2020, the ratio climbs to very high values, reaching a peak of 34.49 in February 2025. This sharp rise indicates that revenues are being generated more efficiently relative to working capital during this later period. However, following this peak, the ratio decreases again to levels around 7.9 to 8.2, suggesting a moderation in turnover efficiency after the highs.

Overall Insights

The data reveals that although working capital has undergone volatility with significant dips and recoveries, revenues have maintained a robust upward path. The fluctuations in working capital turnover ratio signify changing efficiency dynamics, with periods of heightened turnover efficiency corresponding to lower working capital balances. The trends point to a complex interaction between capital management and revenue generation, with the company demonstrating an ability to rebound working capital levels strongly following sharp declines.

Payables Turnover Ratio

The payables turnover ratio demonstrates a declining trend starting from a high of 22.48 in November 2020, decreasing steadily to a low around 15.03 by November 2021. Following this decline, the ratio exhibits some fluctuations but mostly stabilizes between approximately 16 and 19 over subsequent periods up to August 2025. This pattern suggests a gradual slowing in the pace at which payables are being paid off, moving from a higher turnover to a more moderate turnover rate.

Average Payables Payment Period

The average payables payment period, measured in days, generally increases from 16 days in November 2020 to a peak of 24 days in November 2020's immediate quarters, indicating a lengthening of the time taken to settle payables. Subsequently, the payment period fluctuates around approximately 20 to 22 days through the following years, with minor variation. Toward the most recent quarters, the period decreases slightly, reaching figures close to 19 to 21 days, suggesting a slight improvement in payment efficiency compared to the peak periods.

Overall Analysis

The inverse relationship observed between the payables turnover ratio and the average payables payment period is consistent with standard financial principles, as a lower turnover ratio aligns with a longer payment period. The initial trend of decreasing turnover coupled with increasing payment days points to a strategic or operational shift, possibly reflecting altered credit terms or cash flow management strategies. The stabilization in both metrics in later periods indicates the establishment of a more consistent payment pattern, potentially reflecting improved predictability in financial obligations management.