Accenture plc (ACN)

Based on the provided data, Accenture plc's liquidity ratios have remained relatively stable over the past five years. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has fluctuated within a narrow range, with a value of 1.30 in 2023, compared to 1.23 in 2022 and 1.25 in 2021. This indicates that the company possesses sufficient current assets to cover its current liabilities.

Similarly, the quick ratio, which excludes inventory from current assets, also shows consistency over the years, with a value of 1.30 in 2023. This suggests that the company has a strong ability to meet short-term obligations using its most liquid assets.

The cash ratio, which specifically measures the company's ability to cover its short-term liabilities with cash and cash equivalents, has also remained at 1.30 in 2023, highlighting Accenture's robust position in terms of liquidity.

Overall, the stability and adequacy of these ratios indicate that Accenture plc has maintained a healthy liquidity position, enabling it to meet its short-term obligations effectively.

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See also:

Accenture plc Liquidity Ratios

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Additional liquidity measure

The cash conversion cycle of Accenture plc has shown improvement over the past five years. The company's cash conversion cycle has decreased from -20.10 days in 2019 to -20.96 days in 2023. This indicates that the company is managing its operating cycle more efficiently, as it takes less time to convert its investments in inventory and other resources into cash from sales. The negative values in the cash conversion cycle indicate that Accenture is able to collect cash from customers before it needs to pay its suppliers, which is a positive indicator of the company's liquidity and working capital management. Overall, the trend suggests that Accenture has been effective in optimizing its cash conversion cycle, which is a favorable sign for its financial performance.