Accenture plc (ACN)

Return on total capital

		Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	9,603,880	9,224,130	9,212,140	9,071,940	9,054,880	9,344,180	9,213,060	9,320,640	9,131,700	8,810,730	8,439,890	8,151,540	7,736,870	7,607,190	7,165,900	6,915,950	6,729,930	6,503,120	6,532,340	6,397,160
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	28,288,600	27,744,500	27,122,900	26,676,800	25,692,800	25,332,400	23,762,600	22,974,600	22,106,100	21,389,100	20,560,000	20,353,200	19,529,500	19,342,800	18,308,000	17,906,500	17,000,500	16,014,600	15,474,600	15,167,100
Return on total capital		33.95%	33.25%	33.96%	34.01%	35.24%	36.89%	38.77%	40.57%	41.31%	41.19%	41.05%	40.05%	39.62%	39.33%	39.14%	38.62%	39.59%	40.61%	42.21%	42.18%

August 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $9,603,880K ÷ ($—K + $28,288,600K)
= 33.95%

The return on total capital for Accenture plc has demonstrated a consistent trend of strong performance over the past several periods, ranging from 33.25% to 42.21%. The company has shown a remarkable ability to generate earnings in relation to the total capital employed in its operations, indicating efficient utilization of resources to generate profits for shareholders.

The return on total capital peaked at 42.21% in the May 31, 2020 period, showing the highest level of profitability during the period under review. Despite some fluctuations in the ratio over the years, the overall trend indicates that Accenture plc has been successful in delivering favorable returns on the total capital invested in its business.

Investors and stakeholders may view the consistent and robust performance of Accenture plc's return on total capital as a positive indicator of the company's ability to generate value and competitive advantage in the market. It suggests that the company is effectively managing its resources and operations to drive profitability and create long-term shareholder value.