Accenture plc (ACN)

Cash conversion cycle

		Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	66.78	64.18	64.29	64.80	60.86	63.21	63.57	65.60	62.13	66.25	66.58	68.15	63.54	65.75	63.82	63.65	59.22	62.90	63.64	65.65
Number of days of payables	days	19.01	15.67	15.41	17.77	17.36	16.75	17.54	17.47	18.73	18.00	17.72	18.62	20.42	18.00	17.99	16.96	16.23	16.78	18.15	19.04
Cash conversion cycle	days	47.78	48.50	48.88	47.03	43.50	46.46	46.03	48.13	43.40	48.26	48.87	49.53	43.12	47.76	45.82	46.69	42.99	46.12	45.49	46.61

August 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 66.78 – 19.01
= 47.78

The cash conversion cycle of Accenture plc over the mentioned periods has shown fluctuations. The cash conversion cycle represents the number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

From November 2019 to August 2024, the company's cash conversion cycle ranged between 42.99 days to 48.88 days. A shorter cash conversion cycle indicates that the company is able to efficiently manage its working capital, whereas a longer cycle may imply inefficiencies in inventory management, accounts receivable, or accounts payable.

In general, Accenture's cash conversion cycle has been fairly stable, with minor fluctuations observed across the periods. However, the company should continue to monitor and potentially improve its working capital management practices to ensure optimal utilization of resources and enhance overall liquidity.