Accenture plc (ACN)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.10 | 1.16 | 1.26 | 1.33 | 1.30 | 1.37 | 1.29 | 1.26 | 1.23 | 1.27 | 1.23 | 1.22 | 1.25 | 1.42 | 1.39 | 1.45 | 1.40 | 1.37 | 1.38 | 1.39 |
| Quick ratio | 0.89 | 0.93 | 1.02 | 1.08 | 1.10 | 1.14 | 1.05 | 1.04 | 1.05 | 1.06 | 1.02 | 1.03 | 1.08 | 1.25 | 1.22 | 1.29 | 1.24 | 1.19 | 1.18 | 1.23 |
| Cash ratio | 0.26 | 0.30 | 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 |
The liquidity ratios of Accenture plc indicate the company's ability to meet its short-term obligations using its current assets.
The current ratio has shown a slight decline over the past few quarters, from 1.45 in February 2021 to 1.10 in August 2024. This indicates that Accenture's current assets may be decreasing relative to its current liabilities. However, the current ratio has generally remained above 1, suggesting that the company has sufficient current assets to cover its current liabilities.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also declined over time. The ratio decreased from 1.29 in February 2021 to 0.89 in August 2024. Although the quick ratio has fluctuated, it has generally been above 1, indicating that Accenture can meet its short-term obligations without relying on selling inventory.
The cash ratio, which measures a company's ability to pay off its current liabilities using only cash and cash equivalents, has shown significant variability. The ratio ranged from 0.26 to 0.68 over the past few years. While the cash ratio dropped to 0.26 in August 2024, it has generally been above 0.5 in recent quarters, indicating that Accenture holds a substantial amount of cash to cover its short-term liabilities.
Overall, while there has been some fluctuation in Accenture's liquidity ratios, the company generally maintains a healthy liquidity position, with current, quick, and cash ratios above 1 in most quarters. This suggests that Accenture is well-positioned to meet its short-term financial obligations.
See also:
Accenture plc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle for Accenture plc has varied over the historical period provided. The company's cash conversion cycle measures the time it takes to convert its investments in inventory and receivables into cash flows from sales.
From the data, we observe fluctuations in the cash conversion cycle, ranging from a low of 42.99 days to a high of 49.53 days. A lower cash conversion cycle indicates a shorter time between the company's expenditures on production and the receipt of cash from its sales, which is generally considered more favorable.
Over the period analyzed, there appears to be some seasonality or cyclical patterns in the cash conversion cycle, with slight variations seen from quarter to quarter. It is essential for Accenture plc to closely monitor and manage its working capital components, including inventory and receivables, to optimize the cash conversion cycle and ensure efficient operations.
Further analysis could involve investigating the reasons behind the fluctuations in the cash conversion cycle and identifying areas for improvement to enhance cash flow efficiency and overall financial performance.