Accenture PLC (NYSE:ACN)

Payables Turnover

The payables turnover ratio shows a general upward trend from November 2018 through February 2020, increasing from 18.16 to 22.48. Following this peak, the ratio declines, reaching a low of 15.03 in November 2020. Subsequently, it recovers and fluctuates moderately, ranging roughly between 16 and 18 through to the end of the series in May 2025. Notably, there is a sharp increase to 19.54 in February 2024 before dipping again. Overall, the pattern indicates periods of acceleration and deceleration in the rate at which payables are settled, with some volatility in recent years.

Working Capital Turnover

The working capital turnover ratio exhibits considerable variability over the observed periods. Starting around 9.85 in November 2018, it increases steadily, peaking at 15.85 in February 2022. After this peak, the ratio declines slightly but remains elevated compared to earlier values, except for a sharp spike to 34.49 in May 2024, which stands out as an anomaly or possible data irregularity. Following this peak, the ratio drops abruptly to levels near 8 in the latest periods. This pattern suggests fluctuating efficiency in the use of working capital, with some periods of very high turnover likely due to short-term operational factors or accounting adjustments.

Average Payables Payment Period

This metric demonstrates a relatively stable trend with slight fluctuations. The payment period decreases gradually from 20 days in November 2018 to a low of 16 days by November 2019, indicating quicker payments to suppliers during this timeframe. Afterward, it increases steadily to reach about 24 days by November 2020, implying slower payment cycles. From late 2020 onwards, the payment period oscillates mostly between 20 and 22 days, maintaining a consistent pattern. This stability suggests a return to balanced payment practices after a brief period of extension in the payment cycle.

Cost of Services

The cost of services exhibits a generally increasing trend throughout the observed periods. Starting around $7.31 billion in November 2018, it progressively rises with some fluctuations, reaching peaks in the later periods such as November 2021 at around $10.05 billion and further increasing to approximately $11.87 billion by November 2024. Despite some minor contractions in mid-2022 and late 2023, the overall trajectory indicates escalating service costs over time.

Accounts Payable

Accounts payable shows a rising trend over the quarters, beginning at about $1.36 billion in November 2018. There is a steady increase through 2021 and 2022, peaking at nearly $2.56 billion by August 2024. Notably, there are intermittent fluctuations such as a dip in early 2024 followed again by upward movement later that year. The data suggest a gradual expansion in payables consistent with growing operational scale or extended credit terms.

Payables Turnover Ratio

The payables turnover ratio data, available from mid-2019 onwards, reveals a decline over the observed timeframe. Initially, the ratio is high, exceeding 18 in mid-2019, increasing steadily to a peak near 22.48 in August 2020. From that point, a descending trend is observed with the ratio lowering to approximately 15.94 by November 2024. This downward movement indicates that the company is taking longer to pay its suppliers over time, possibly reflecting changes in payment policies or cash management strategies.

Overall Analysis

The increasing cost of services alongside the rise in accounts payable suggests that the company is scaling operations or experiencing higher input costs. The decreasing payables turnover ratio indicates a lengthening of payment periods to suppliers, which may be a strategic decision to manage cash flows or a response to external liquidity conditions. The combination of these elements points to evolving operational and financial management practices over the analyzed quarters.

The analysis of the quarterly financial data reveals notable fluctuations and trends in the key financial metrics over the reviewed periods.

Working Capital

Working capital demonstrated an overall increasing trend from the start period through late 2020, with values rising from approximately 3.36 million US dollars to nearly 5.81 million US dollars. This upward momentum suggests improved liquidity or operational efficiency during this timeframe. However, a significant decline occurred from early 2021, reaching a trough around mid-2024 with the lowest values around 1.88 million US dollars. Subsequently, a strong recovery is observed towards the end of the data set, with working capital escalating to over 8.64 million US dollars by mid-2025. The volatility indicates possible variations in current assets and liabilities management or capital deployment strategy changes during the timeline.

Revenues

Revenue figures maintained a generally upward trajectory despite periodic fluctuations. Starting at around 10.6 billion US dollars, revenues showed steady increments, peaking near 17.7 billion US dollars in the final quarters analyzed. Growth appeared consistent, with only minor dips typically corrected in subsequent quarters. This positive revenue trend highlights expanding sales or service incomes, possibly reflecting business growth, increased market share, or pricing adjustments.

Working Capital Turnover Ratio

The working capital turnover ratio, which measures the efficiency of using working capital to generate revenue, displayed high variability. Unfortunately, no data was provided before November 2019. From that point, values ranged roughly between 7.7 and 15.85 initially, rising substantially to an exceptionally high level exceeding 34.49 around late 2024, before dropping again to approximately 7.9 by mid-2025. This fluctuation suggests varying operational efficiency or working capital utilization rates, which may be influenced by seasonal factors, shifts in inventory management, receivables, payables, or changes in revenue patterns relative to working capital.

In summary, the company experienced significant shifts in working capital availability and utilization efficiency amid a generally expanding revenue base. The volatile working capital and turnover ratio necessitate further investigation into the underlying causes, such as changes in operational policies or external economic factors. The revenue growth, sustained over multiple quarters, indicates strengthening top-line performance despite these operational shifts.

The payables turnover ratio exhibits a general upward trend starting from a point near 18.16 in late 2018 and reaching a peak of 22.48 by November 2020. This increase signifies that the company was accelerating the rate at which it was paying off its suppliers during this period. Following the peak, the ratio declined steadily over the next year, bottoming out near 15.03 in August 2021, indicating a slower payment cycle.

From late 2021 onwards, the payables turnover ratio shows some recovery, fluctuating mostly in the range of approximately 16.37 to 19.54. The ratio displays variability but no clear directional trend, suggesting some inconsistency in payment velocity through this latter timeframe. Overall, the ratio remains somewhat below the earlier peak levels observed in 2020.

Correspondingly, the average payables payment period, measured in days, is inversely related to the turnover ratio trends. It begins around 20 days in late 2018 and decreases to a minimum of 16 days in November 2019, consistent with faster payments as indicated by the rising turnover ratio during that period.

Subsequently, the payment period increases steadily, reaching about 24 days in August 2021, which aligns with the declining trend in the payables turnover ratio at that time. This suggests a deliberate lengthening of payment terms or a slower settlement process.

After mid-2021, the average payment period fluctuates mostly between 19 and 23 days, indicating some stabilization but with ongoing minor variability in payment timing. The data imply a shift towards a moderately extended payment cycle compared to the earlier faster payment period ending in 2019.

In summary, the analysis of payables turnover and average payment period over the presented quarters shows a phase of increasingly prompt payments culminating around late 2020, followed by a gradual and then fluctuating return to longer payment cycles through to mid-2025. The shifts suggest changing payment policies or operational adjustments affecting how quickly payables are settled during the timeframe analyzed.

Payables Turnover Trend

Rise from ~18 toward peak 22.48 in late 2020, then gradual decline and fluctuation around 16-19 thereafter.

Average Payables Payment Period Trend

Decrease from ~20 days to 16 days by late 2019, followed by increase to 24 days by mid-2021, then fluctuation between 19-23 days up to 2025.

Relationship between Metrics

Inverse correlation observed: faster payments correspond to higher turnover ratio and lower payment days, slower payments correspond to lower turnover and higher payment days.

Implications

Changing payment dynamics over time suggest adjustments in credit management or cash flow strategy, with a period of aggressive payables turnover followed by a more moderated approach.