Accenture plc (ACN)

Working capital turnover

		Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
Revenue	US$ in thousands	64,896,500	64,111,700	61,594,300	50,533,400	44,327,000
Total current assets	US$ in thousands	20,857,800	23,381,900	21,610,900	19,666,500	17,749,800
Total current liabilities	US$ in thousands	18,976,100	18,009,000	17,523,500	15,708,900	12,662,600
Working capital turnover		34.49	11.93	15.07	12.77	8.71

August 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $64,896,500K ÷ ($20,857,800K – $18,976,100K)
= 34.49

Accenture plc's working capital turnover has seen a significant increase over the past five years, indicating an improvement in the company's efficiency in managing its working capital. The ratio has risen from 8.71 in 2020 to 34.49 in 2024, reflecting a threefold increase during this period.

A higher working capital turnover ratio suggests that Accenture is generating more revenue relative to its investment in working capital. This can be a positive sign of effective working capital management, as the company is able to convert its current assets into sales more frequently.

The substantial improvement in the working capital turnover ratio over the years indicates that Accenture has become more efficient in utilizing its working capital to support its operations and generate revenue. This trend can potentially lead to improved cash flow and profitability for the company.

Overall, the increasing trend in Accenture's working capital turnover ratio signifies a positive development in the company's operational efficiency and financial performance.