Accenture plc (ACN)

Working capital turnover

		Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
Revenue	US$ in thousands	64,111,700	61,594,300	50,533,400	44,327,000	43,215,000
Total current assets	US$ in thousands	23,381,900	21,610,900	19,666,500	17,749,800	15,450,600
Total current liabilities	US$ in thousands	18,009,000	17,523,500	15,708,900	12,662,600	11,061,900
Working capital turnover		11.93	15.07	12.77	8.71	9.85

August 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $64,111,700K ÷ ($23,381,900K – $18,009,000K)
= 11.93

The working capital turnover measures how efficiently a company is using its working capital to generate sales. A high working capital turnover indicates that the company is efficiently managing its working capital.

Looking at Accenture plc's working capital turnover over the past five years, we observe fluctuations in the ratio. In 2023, the working capital turnover decreased to 11.93 from 15.07 in 2022. This decrease suggests a decrease in the efficiency of converting working capital into sales for the year. However, 11.93 still indicates a relatively robust efficiency in utilizing working capital.

In 2021, the working capital turnover was 12.77, which was slightly lower than the previous year. This suggests a slight dip in efficiency in converting working capital into sales.

In 2020, the working capital turnover rose to 8.71 from 9.85 in 2019, indicating an improvement in the efficiency of utilizing working capital to generate sales. However, the ratio remains relatively low compared to the figures from the surrounding years.

Overall, the trend in working capital turnover for Accenture plc shows fluctuations but generally indicates efficient management of working capital. It is important to note that working capital turnover should be considered alongside other financial metrics to provide a comprehensive analysis of the company's overall financial performance.