Accenture plc (ACN)

Return on total capital

		Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	9,054,880	9,131,700	7,736,870	6,729,930	6,207,630
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	25,692,800	22,106,100	19,529,500	17,000,500	14,409,000
Return on total capital		35.24%	41.31%	39.62%	39.59%	43.08%

August 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $9,054,880K ÷ ($—K + $25,692,800K)
= 35.24%

The return on total capital for Accenture plc has shown a slight decline over the five-year period from 2019 to 2023. In 2019, the return on total capital was 43.69%, which then decreased to 38.21% in 2023. This indicates a decrease in the company's efficiency in generating profits from its total capital employed over the years.

While the return on total capital fluctuated slightly year over year, it remained relatively high, indicating the company's ability to generate a substantial return from the total capital invested. However, the downward trend in the ratio over the period suggests a potential need for the company to reassess its capital allocation and utilization strategies to improve efficiency and sustainability of returns.

It is important for investors and stakeholders to monitor this trend closely and assess management's strategies for optimizing the utilization of the company's total capital in the future.