Accenture PLC (NYSE:ACN)

The short-term operating activity ratios exhibit varied trends over the observed period. Payables turnover generally remained within a relatively narrow range, while working capital turnover demonstrated more significant fluctuations. The average payables payment period remained consistently stable for the majority of the period, with a slight increase towards the end.

Payables Turnover

Payables turnover decreased from 20.16 to 15.03 between November 2020 and August 2021, indicating a lengthening of the time it takes to pay suppliers. A subsequent increase to 17.54 by November 2022 suggests improved efficiency in managing payables. The ratio then fluctuated between 17.35 and 19.54 over the next six quarters, before decreasing to 15.94 in May 2024. A rebound to 17.38 in August 2024 was followed by relative stability, with the ratio ending at 17.60 in August 2025 and 16.19 in November 2025. The final two periods show a slight decrease to 15.73 and then 15.73.

Working Capital Turnover

Working capital turnover experienced substantial volatility. It rose from 7.70 in November 2020 to a peak of 15.85 in November 2021, suggesting improved efficiency in utilizing working capital. A decline to 10.11 by May 2023 indicated a less efficient use of working capital. A significant surge to 34.49 in May 2024 represents a substantial improvement in working capital utilization, followed by a sharp decrease to 8.28 in August 2024. The ratio then stabilized around 8, fluctuating between 7.92 and 8.66 over the subsequent quarters, before increasing to 10.23 in February 2026.

Average Payables Payment Period

The average payables payment period remained remarkably consistent for most of the analyzed timeframe, generally hovering around 21 to 22 days. A gradual increase from 18 days in November 2020 to 24 days in August 2021 was observed. However, it quickly reverted to the 21-22 day range and remained there until May 2025. A slight increase to 23 days occurred in both November 2025 and February 2026, suggesting a minor lengthening in the time taken to settle payables towards the end of the period.

The contrasting trends in working capital and payables turnover suggest a complex relationship between inventory management, sales, and supplier credit terms. The significant increase in working capital turnover in May 2024, followed by a sharp decline, warrants further investigation to understand the underlying drivers of this fluctuation.

The accounts payable turnover ratio exhibits a generally stable pattern over the observed period, with fluctuations occurring primarily between 15.03 and 20.16. An initial downward trend is apparent from November 2020 to August 2021, followed by a period of relative stability and then a slight increase into early 2023. More recent quarters show a downward trend again, concluding with a ratio of 15.73 in the latest period.

Overall Trend

The ratio demonstrates a cyclical pattern rather than a consistent upward or downward trajectory. It generally remains within a relatively narrow range, suggesting consistent management of payment terms with suppliers. The fluctuations observed may be attributable to changes in purchasing volume, supplier payment terms, or the timing of invoice processing.

Initial Decline (Nov 2020 - Aug 2021)

A decrease in the payables turnover ratio is observed from 20.16 in November 2020 to 15.03 in August 2021. This suggests a lengthening of the time taken to pay suppliers during this period, potentially due to increased purchasing activity or a deliberate strategy to extend payment terms. The cost of services also increased during this period, which may have contributed to the increase in accounts payable.

Stabilization and Increase (Aug 2021 - Feb 2023)

Following the decline, the ratio stabilizes and experiences a slight increase, reaching 18.03 in February 2023. This indicates a return to more typical payment patterns or a tightening of payment terms. The cost of services continued to rise, but accounts payable did not increase at the same rate, resulting in a higher turnover ratio.

Recent Decline (Feb 2023 - Feb 2026)

The most recent periods show a renewed downward trend, with the ratio decreasing from 17.35 in February 2023 to 15.73 in February 2026. This could indicate a recent shift in payment practices, potentially linked to economic conditions or changes in supplier relationships. Accounts payable have been increasing at a faster rate than the cost of services in recent quarters, contributing to this decline.

Notable Fluctuations

The highest ratio recorded is 20.16 (November 2020), while the lowest is 15.03 (August 2021). The significant increase to 19.54 in November 2024, followed by a decline, warrants further investigation to understand the underlying drivers of these changes.

In conclusion, the accounts payable turnover ratio demonstrates a generally consistent pattern with cyclical fluctuations. While the ratio remains within a manageable range, the recent downward trend should be monitored to assess its potential impact on supplier relationships and working capital management.

The working capital turnover ratio exhibits considerable fluctuation over the observed period, spanning from November 2020 to August 2025. Initially, the ratio demonstrates an increase from 7.70 to 8.35, followed by a slight decrease to 7.71. A significant surge is then observed, peaking at 15.85, before declining to 13.40 and stabilizing around the 14-15 range for several quarters.

Subsequent to February 2023, the ratio experiences a notable downward trend, falling to 8.66 by August 2025. This decline occurs alongside fluctuations in both working capital and revenues, suggesting a complex relationship between these variables. The most recent periods show a slight increase from 8.15 to 8.66 and then to 10.23, indicating a potential stabilization or reversal of the prior downward trend.

Overall Trend

The overall trend is characterized by volatility. While periods of strong turnover are evident, particularly between May 2021 and February 2023, a clear, sustained upward or downward trajectory is not present. The latter portion of the period shows a marked decrease in the ratio, followed by a recent uptick.

Peak Performance

The highest working capital turnover ratio of 34.49 occurred in May 2024. This peak coincides with a relatively low level of working capital and a high level of revenues, suggesting efficient utilization of resources during that quarter. However, this was preceded by a period of consistently high turnover, peaking at 22.48 in February 2024.

Recent Performance

The most recent quarters (May 31, 2025 and August 31, 2025) show an increase in the ratio, moving from 8.15 to 8.66 and then to 10.23. This suggests a potential improvement in working capital management or a shift in revenue generation strategies. However, it is too early to determine if this represents a sustained change in trend.

Relationship to Working Capital & Revenues

The fluctuations in the working capital turnover ratio appear to be influenced by both changes in working capital and revenues. Periods of high turnover generally correspond to lower working capital levels relative to revenue. The significant decline in the ratio after February 2023 appears to be linked to an increase in working capital alongside relatively stable revenue levels.

In conclusion, the working capital turnover ratio demonstrates a dynamic pattern over the analyzed timeframe. While periods of efficient working capital utilization are observed, a recent downward trend warrants further investigation to understand the underlying drivers and potential implications for operational efficiency.

The average payables payment period exhibited a generally stable pattern over the analyzed period, spanning from November 2020 to November 2025, with some fluctuations. An initial increasing trend is observed, followed by a period of relative consistency, and then some variability towards the end of the period.

Initial Trend (Nov 30, 2020 – Aug 31, 2021)

The average payables payment period increased from 18 days in November 2020 to 24 days in August 2021. This suggests a lengthening in the time taken to settle obligations to suppliers during this timeframe. This could be due to a variety of factors, including negotiating extended payment terms with suppliers or a shift in procurement strategies.

Period of Stability (Nov 30, 2021 – Aug 31, 2022)

Following the peak in August 2021, the average payables payment period stabilized, fluctuating between 21 and 22 days for several quarters. This indicates a consistent approach to managing supplier payments. The slight variations within this range are likely attributable to normal business fluctuations.

Recent Variability (Nov 30, 2022 – Nov 30, 2025)

From November 2022 onwards, the average payables payment period demonstrated increased variability. A decrease to 19 days is observed in February 2024, followed by a rise to 23 days in August 2024. The period then fluctuates between 21 and 23 days through November 2025. This suggests potential changes in supplier relationships, cash flow management, or deliberate adjustments to payment policies. The increase to 23 days in both August 2024 and November 2025 warrants further investigation.

Overall Assessment

The average payables payment period generally remained within a manageable range of 18 to 24 days throughout the analyzed period. While an initial lengthening was observed, it was followed by a period of stability. The recent fluctuations suggest a need for continued monitoring to understand the underlying drivers and ensure optimal working capital management.