Accenture plc (ACN)

Cash ratio

		Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
Cash and cash equivalents	US$ in thousands	5,004,470	9,045,030	7,889,830	8,168,170	8,415,330
Short-term investments	US$ in thousands	5,396	4,575	3,973	4,294	94,309
Total current liabilities	US$ in thousands	18,976,100	18,009,000	17,523,500	15,708,900	12,662,600
Cash ratio		0.26	0.50	0.45	0.52	0.67

August 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($5,004,470K + $5,396K) ÷ $18,976,100K
= 0.26

The cash ratio measures a company's ability to cover its current liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.

Looking at Accenture plc's cash ratio over the past five years, we see a declining trend from 0.67 in 2020 to 0.26 in 2024. This indicates that in 2024, Accenture may have had a lower level of cash and cash equivalents relative to its current liabilities compared to the previous years.

It's worth noting that while a decreasing trend in the cash ratio could potentially raise concerns about liquidity and the company's ability to meet its short-term obligations, a cash ratio of 0.26 in 2024 still suggests that Accenture had a sufficient level of cash to cover its immediate liabilities. However, monitoring this ratio closely over time is important to ensure that Accenture maintains a healthy liquidity position.