Accenture plc (ACN)

Quick ratio

		Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
Cash	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
Receivables	US$ in thousands	11,873,400	10,690,700	10,484,200	8,796,990	7,192,110
Total current liabilities	US$ in thousands	18,976,100	18,009,000	17,523,500	15,708,900	12,662,600
Quick ratio		0.89	1.10	1.05	1.08	1.24

August 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($5,004,470K + $5,396K + $11,873,400K) ÷ $18,976,100K
= 0.89

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered favorable, as it suggests the company has sufficient liquid assets to cover its short-term liabilities.

Analyzing Accenture plc's quick ratio data from 2020 to 2024, we observe a fluctuating trend. The quick ratio decreased from 1.24 in 2020 to 0.89 in 2024, indicating a potential decline in the company's ability to meet its short-term obligations with its liquid assets.

In 2021 and 2022, the quick ratio was relatively stable at 1.08 and 1.05 respectively, suggesting that Accenture had a sufficient buffer of liquid assets to cover its short-term liabilities during those years.

However, there was a notable decrease in the quick ratio in 2023 to 1.10, followed by a further decline to 0.89 in 2024. This decreasing trend could raise concerns about the company's liquidity position and its ability to meet short-term financial obligations without relying on external financing sources.

Overall, the downward trend in Accenture's quick ratio over the years indicates a potential weakening liquidity position, and further analysis of the company's financial performance and solvency may be warranted.