Accenture plc (ACN)
Return on equity (ROE)
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 7,264,790 | 6,871,560 | 6,877,170 | 5,906,810 | 5,107,840 |
| Total stockholders’ equity | US$ in thousands | 28,288,600 | 25,692,800 | 22,106,100 | 19,529,500 | 17,000,500 |
| ROE | 25.68% | 26.75% | 31.11% | 30.25% | 30.05% |
August 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $7,264,790K ÷ $28,288,600K
= 25.68%
The return on equity (ROE) for Accenture plc has shown a decreasing trend over the past five years, from 30.05% in August 2020 to 25.68% in August 2024. Despite the decline, the company has generally maintained a healthy ROE above 25% during this period, indicating efficient utilization of shareholders' equity to generate profits.
The ROE of 25.68% in August 2024 suggests that for every dollar of shareholders' equity invested, Accenture generated a profit of approximately $0.26. This indicates that the company continues to effectively generate profit relative to the equity invested by shareholders, albeit at a slightly lower rate compared to previous years.
It is important for investors and stakeholders to further analyze the factors contributing to the fluctuation in ROE, such as changes in profitability, leverage, or asset turnover, to gain a deeper understanding of Accenture's financial performance and sustainability.
Peer comparison
Aug 31, 2024