Accenture plc (ACN)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 1.40 | 1.34 |
| Quick ratio | 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 | 1.23 | 1.17 |
| 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 |
Accenture plc's liquidity ratios provide insights into the company's ability to meet its short-term obligations and cover immediate financial needs:
1. Current ratio: Accenture's current ratio has generally been above 1, indicating that the company has more current assets than current liabilities to cover its short-term obligations. The ratio has ranged from 1.22 to 1.45, with the lowest value in August 2021, and the highest in May 2020.
2. Quick ratio: The quick ratio, which excludes inventory from current assets, has also been above 1 for Accenture, reflecting a strong ability to meet short-term obligations without relying on selling inventory. The ratio has varied from 1.02 to 1.29, with the lowest value in February 2020, and the highest in August 2021.
3. Cash ratio: Accenture's cash ratio has been relatively lower compared to the current and quick ratios, indicating a lower proportion of cash and cash equivalents to cover short-term liabilities. The ratio has fluctuated between 0.32 and 0.68, with the lowest value in February 2020 and the highest in August 2019.
Overall, Accenture's liquidity ratios show a consistent ability to cover short-term obligations, although the cash ratio suggests a relatively lower level of cash reserves compared to current and quick assets. Investors and analysts may monitor these ratios over time to assess changes in the company's liquidity position and financial health.
See also:
Accenture plc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 conversion cycle | days | 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 | 42.97 | 45.24 |
The cash conversion cycle of Accenture plc has shown fluctuations over the past periods, ranging from a low of 42.99 days to a high of 49.53 days. The cash conversion cycle represents the number of days it takes for a company to convert its investments in inventory and other resources into cash from sales to customers, and then back into cash through the collection of accounts receivables.
A lower cash conversion cycle indicates a more efficient management of working capital and a quicker conversion of investments into cash. On the other hand, a higher cash conversion cycle implies a longer time for the company to recover its investments, which may have implications for liquidity and operational efficiency.
In the case of Accenture plc, the cash conversion cycle has generally been around 45-49 days, with some fluctuations. It is important for the company to continue monitoring and managing its working capital effectively to optimize its cash conversion cycle. This includes streamlining inventory management, improving accounts receivable collection processes, and negotiating favorable payment terms with suppliers to enhance operational efficiency and maintain healthy liquidity levels.