Accenture plc (ACN)

Current ratio

		Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
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
Current ratio		1.10	1.30	1.23	1.25	1.40

August 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $20,857,800K ÷ $18,976,100K
= 1.10

The current ratio of Accenture plc has shown a declining trend over the past five years, decreasing from 1.40 in 2020 to 1.10 in 2024. This indicates that the company's current assets may not be as sufficient to cover its current liabilities compared to previous years. A current ratio below 1 suggests that the company may have difficulty meeting its short-term obligations, although Accenture's current ratio has remained above this threshold.

While a current ratio of 1.10 in 2024 may raise some concerns about short-term liquidity, it is important to note that the ratio is still above 1, indicating that Accenture has more current assets than current liabilities. However, investors and analysts may monitor this trend closely to ensure that the company maintains an appropriate level of liquidity to meet its short-term financial obligations.