Accenture plc (ACN)

Cash ratio

		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	Aug 31, 2019	May 31, 2019
Cash and cash equivalents	US$ in thousands	5,121,110	7,140,840	9,045,030	8,535,450	6,238,790	5,899,700	7,889,830	6,703,570	5,466,120	5,637,120	8,168,170	10,009,400	9,166,580	8,594,000	8,415,330	6,442,260	5,436,460	5,810,540	6,126,850	4,769,160
Short-term investments	US$ in thousands	4,540	4,597	4,575	4,482	4,189	4,095	3,973	4,322	6,031	6,968	4,294	4,433	3,518	83,148	94,309	3,676	3,643	3,303	3,313	3,338
Total current liabilities	US$ in thousands	16,136,000	17,280,200	18,009,000	17,092,500	16,349,500	16,460,200	17,523,500	16,562,600	15,540,100	15,232,000	15,708,900	14,929,600	14,090,700	12,819,100	12,662,600	11,828,300	11,177,600	11,199,400	11,061,900	10,552,000
Cash ratio		0.32	0.41	0.50	0.50	0.38	0.36	0.45	0.41	0.35	0.37	0.52	0.67	0.65	0.68	0.67	0.54	0.49	0.52	0.55	0.45

February 29, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($5,121,110K + $4,540K) ÷ $16,136,000K
= 0.32

The cash ratio of Accenture plc has fluctuated over the past few years, ranging from a low of 0.32 to a high of 0.68. The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates that a company has a stronger ability to meet its short-term obligations.

Looking at the trend in the cash ratio, we can observe that there are periods where the ratio increases and periods where it decreases. For example, the cash ratio was relatively stable around 0.50 in August 2023 and May 2023, indicating a healthy liquidity position. However, the ratio dipped to 0.32 in February 2024, suggesting a decrease in the company's ability to cover its short-term liabilities with cash.

Overall, it's important to monitor the cash ratio over time to ensure that Accenture plc maintains a sufficient level of liquidity to meet its short-term obligations and capitalize on potential opportunities.