Accenture plc (ACN)

Payables turnover

		Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
Cost of revenue	US$ in thousands	55,755,100	52,673,700	43,228,600	30,350,900	29,900,300
Payables	US$ in thousands	2,491,170	2,559,480	2,274,060	1,349,870	1,646,640
Payables turnover		22.38	20.58	19.01	22.48	18.16

August 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $55,755,100K ÷ $2,491,170K
= 22.38

The payables turnover ratio of Accenture plc has displayed varying trends over the past five years. The ratio measures how efficiently the company manages its accounts payable.

The payables turnover ratio has increased from 15.03 in 2021 to 17.41 in 2023, indicating that Accenture has been managing its accounts payable more efficiently. This improvement suggests that the company is taking longer to pay its suppliers, which can free up cash for other uses or indicate strong bargaining power with suppliers.

However, it is important to note that the payables turnover ratio was notably higher in 2020 at 22.48, compared to the years immediately before and after. This could suggest that the company was paying its suppliers at a faster rate in 2020.

Overall, the increasing trend in the payables turnover ratio from 2021 to 2023 indicates a positive change in the management of accounts payable at Accenture plc. This could result from enhanced negotiation power with suppliers or an effort to free up cash for other uses within the business.