Accenture plc (ACN)
Return on total capital
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 9,603,880 | 9,054,880 | 9,131,700 | 7,736,870 | 6,729,930 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 28,288,600 | 25,692,800 | 22,106,100 | 19,529,500 | 17,000,500 |
| Return on total capital | 33.95% | 35.24% | 41.31% | 39.62% | 39.59% |
August 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $9,603,880K ÷ ($—K + $28,288,600K)
= 33.95%
Accenture plc's return on total capital has exhibited a decreasing trend over the past five years, declining from 39.59% in 2020 to 33.95% in 2024. Despite this decline, the company consistently generated strong returns on its total capital, with figures consistently above 30% each year. This indicates that Accenture has been effectively utilizing its total capital to generate profits. The slight decrease in the return on total capital may be attributed to various factors, such as changes in the company's capital structure, investment decisions, or overall profitability. Overall, Accenture's ability to generate a return on total capital above 30% signifies efficient capital management and effective utilization of resources to drive profitability.
Peer comparison
Aug 31, 2024