Accenture plc (ACN)
Profitability ratios
Return on sales
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 13.94% | 13.03% | 14.48% | 14.46% | 31.53% |
| Operating profit margin | 14.79% | 13.74% | 15.21% | 15.08% | 14.69% |
| Pretax margin | 14.71% | 14.05% | 14.75% | 15.19% | 15.11% |
| Net profit margin | 11.19% | 10.72% | 11.17% | 11.69% | 11.52% |
Accenture plc's profitability ratios have exhibited fluctuations over the past five years. The gross profit margin ranged from 13.03% to 31.53%, showing a significant decrease in 2020, followed by a gradual recovery. This indicates the efficiency of the company in generating profits from its core operations.
The operating profit margin has also varied, with a slight increase from 13.74% in 2023 to 14.79% in 2024. This metric reflects the company's ability to control costs and generate profits from its operating activities.
The pretax margin has shown a similar trend, fluctuating between 14.05% and 15.19%. This ratio highlights the company's ability to manage its expenses and generate profits before accounting for taxes.
The net profit margin, which indicates the amount of profit generated after all expenses including taxes, ranged from 10.72% to 11.69%. The company's ability to maintain positive net profit margins across the years signifies its overall profitability and effectiveness in managing costs.
Overall, while there have been fluctuations in Accenture's profitability ratios over the years, the company has demonstrated resilience and efficiency in generating profits from its operations.
Return on investment
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 17.16% | 17.19% | 19.82% | 17.65% | 17.57% |
| Return on assets (ROA) | 12.99% | 13.41% | 14.55% | 13.68% | 13.78% |
| Return on total capital | 33.95% | 35.24% | 41.31% | 39.62% | 39.59% |
| Return on equity (ROE) | 25.68% | 26.75% | 31.11% | 30.25% | 30.05% |
Profitability ratios provide insight into how effectively a company is utilizing its resources to generate profits.
1. Operating return on assets (Operating ROA) has shown a relatively stable trend over the past five years, ranging from 17.16% to 19.82%. This indicates that Accenture plc is consistently generating operating income relative to its assets.
2. Return on assets (ROA) has exhibited a similar pattern, staying between 12.99% and 14.55% during the same period. This ratio reflects the overall profitability of the company's assets and indicates Accenture's ability to generate profit from its total assets.
3. Return on total capital has seen a consistent decline from 41.31% in 2022 to 33.95% in 2024. This ratio represents the return earned on both debt and equity capital invested in the business, suggesting a potential decrease in efficiency in utilizing total capital to generate returns.
4. Return on equity (ROE) has also shown a downward trend, dropping from 31.11% in 2022 to 25.68% in 2024. ROE measures the return generated on shareholders' equity, indicating a diminishing ability of Accenture to generate profits from shareholder investments.
Overall, while Accenture plc has demonstrated stable operating profitability, the decline in return on total capital and return on equity over the years raises concerns about the company's ability to deliver consistent returns to investors and efficiently utilize its capital resources.