Accenture plc (ACN)
Profitability ratios
Return on sales
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 13.03% | 14.48% | 14.46% | 31.53% | 30.81% |
| Operating profit margin | 13.74% | 15.21% | 15.08% | 14.69% | 14.59% |
| Pretax margin | 14.05% | 14.75% | 15.19% | 15.11% | 14.31% |
| Net profit margin | 10.72% | 11.17% | 11.69% | 11.52% | 11.06% |
Accenture plc has demonstrated a consistent gross profit margin over the past five years, with a slight increase from 30.81% in 2019 to 32.34% in 2023. This indicates the company's ability to efficiently control the cost of goods sold. The operating profit margin has also shown stability, exhibiting a gradual improvement from 14.59% in 2019 to 15.40% in 2023, highlighting Accenture's effective management of operating expenses.
The pretax margin, however, has experienced some fluctuations over the years, with a decrease from 15.36% in 2021 to 14.26% in 2023. This may suggest varying levels of non-operating income or expenses affecting the company's profitability before taxes.
In terms of net profit margin, Accenture's performance has been relatively steady, with values ranging from 11.06% in 2019 to 11.17% in 2022. However, there was a notable decline to 10.72% in 2023, indicating potential challenges in controlling income taxes and interest payments.
Overall, the company has shown commendable success in maintaining and improving its profitability margins, reflecting efficient cost management and sustained earnings. However, the recent decline in net profit margin and pretax margin may warrant further investigation into the factors influencing Accenture's overall profitability.
Return on investment
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 17.19% | 19.82% | 17.65% | 17.57% | 21.17% |
| Return on assets (ROA) | 13.41% | 14.55% | 13.68% | 13.78% | 16.04% |
| Return on total capital | 35.24% | 41.31% | 39.62% | 39.59% | 43.08% |
| Return on equity (ROE) | 26.75% | 31.11% | 30.25% | 30.05% | 33.17% |
Based on the provided profitability ratios for Accenture plc, we can observe the following trends:
Operating return on assets (Operating ROA) has displayed a generally stable performance over the past five years, with a slight decrease from 21.17% in 2019 to 19.27% in 2023. This indicates that the company's operational efficiency in generating profits from its assets has remained fairly consistent.
Return on assets (ROA) has shown a similar trend, with a gradual decline from 16.04% in 2019 to 13.41% in 2023. This suggests that the overall profitability derived from the company's total assets has experienced a modest decrease over the years.
Return on total capital has followed a comparable pattern, demonstrating a decline from 43.69% in 2019 to 38.21% in 2023. This indicates a decreasing trend in the company's ability to generate profits from its total invested capital.
Return on equity (ROE) has also exhibited a decline over the five-year period, decreasing from 33.17% in 2019 to 26.75% in 2023. This suggests a reduction in the company's ability to generate returns for its shareholders based on the equity invested.
In summary, the profitability ratios of Accenture plc have shown a declining trend over the past five years, indicating a decrease in the company's overall ability to generate profits from its assets, capital, and equity. Further analysis of the underlying factors influencing this trend would be necessary to provide a comprehensive assessment of the company's current financial performance.