An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Adjustments to Financial Statements for Operating Leases
Adjusted Financial Ratios for Operating Leases (Summary)
Adjusted Total Asset Turnover
Adjusted Debt to Equity
Adjusted Return on Assets (ROA)

Accenture PLC, adjustments to financial statements

US$ in thousands

	Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
Adjustment to Total Assets
Total assets (as reported)	55,932,363)	51,245,305)	47,263,390)	43,175,843)	37,078,593)	29,789,880)
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)¹	—)	—)	—)	—)	—)	3,839,556)
Total assets (adjusted)	55,932,363)	51,245,305)	47,263,390)	43,175,843)	37,078,593)	33,629,436)
Adjustment to Total Debt
Total debt (as reported)	1,024,857)	147,903)	55,068)	65,553)	61,872)	22,658)
Add: Operating lease liability (before adoption of FASB Topic 842)²	—)	—)	—)	—)	—)	3,839,556)
Add: Current operating lease liabilities	726,202)	690,417)	707,598)	744,164)	756,057)	—)
Add: Non-current operating lease liabilities	2,369,490)	2,310,714)	2,563,090)	2,696,917)	2,667,584)	—)
Total debt (adjusted)	4,120,549)	3,149,034)	3,325,756)	3,506,634)	3,485,513)	3,862,214)

Based on: 10-K (reporting date: 2024-08-31), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-08-31), 10-K (reporting date: 2021-08-31), 10-K (reporting date: 2020-08-31), 10-K (reporting date: 2019-08-31).

^{1, 2} Equal to total present value of future operating lease payments.

Accenture PLC, Financial Data: Reported vs. Adjusted

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Accenture PLC, adjusted financial ratios

	Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
Total Asset Turnover¹
Reported total asset turnover	1.16	1.25	1.30	1.17	1.20	1.45
Adjusted total asset turnover	1.16	1.25	1.30	1.17	1.20	1.29
Debt to Equity²
Reported debt to equity	0.04	0.01	0.00	0.00	0.00	0.00
Adjusted debt to equity	0.15	0.12	0.15	0.18	0.21	0.27
Return on Assets³ (ROA)
Reported ROA	12.99%	13.41%	14.55%	13.68%	13.78%	16.04%
Adjusted ROA	12.99%	13.41%	14.55%	13.68%	13.78%	14.21%

Based on: 10-K (reporting date: 2024-08-31), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-08-31), 10-K (reporting date: 2021-08-31), 10-K (reporting date: 2020-08-31), 10-K (reporting date: 2019-08-31).

¹ See details »

² See details »

³ See details »

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Accenture PLC adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted debt to equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	Accenture PLC adjusted debt to equity ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Accenture PLC adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

Accenture PLC, Financial Ratios: Reported vs. Adjusted

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	Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Revenues	64,896,464)	64,111,745)	61,594,305)	50,533,389)	44,327,039)	43,215,013)
Total assets	55,932,363)	51,245,305)	47,263,390)	43,175,843)	37,078,593)	29,789,880)
Activity Ratio
Total asset turnover¹	1.16	1.25	1.30	1.17	1.20	1.45
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Revenues	64,896,464)	64,111,745)	61,594,305)	50,533,389)	44,327,039)	43,215,013)
Adjusted total assets	55,932,363)	51,245,305)	47,263,390)	43,175,843)	37,078,593)	33,629,436)
Activity Ratio
Adjusted total asset turnover²	1.16	1.25	1.30	1.17	1.20	1.29

Based on: 10-K (reporting date: 2024-08-31), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-08-31), 10-K (reporting date: 2021-08-31), 10-K (reporting date: 2020-08-31), 10-K (reporting date: 2019-08-31).

2024 Calculations

¹ Total asset turnover = Revenues ÷ Total assets
= 64,896,464 ÷ 55,932,363 = 1.16

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 64,896,464 ÷ 55,932,363 = 1.16

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Accenture PLC adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

	Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Total debt	1,024,857)	147,903)	55,068)	65,553)	61,872)	22,658)
Total Accenture plc shareholders’ equity	28,288,646)	25,692,839)	22,106,097)	19,529,454)	17,000,536)	14,409,008)
Solvency Ratio
Debt to equity¹	0.04	0.01	0.00	0.00	0.00	0.00
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Adjusted total debt	4,120,549)	3,149,034)	3,325,756)	3,506,634)	3,485,513)	3,862,214)
Total Accenture plc shareholders’ equity	28,288,646)	25,692,839)	22,106,097)	19,529,454)	17,000,536)	14,409,008)
Solvency Ratio
Adjusted debt to equity²	0.15	0.12	0.15	0.18	0.21	0.27

Based on: 10-K (reporting date: 2024-08-31), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-08-31), 10-K (reporting date: 2021-08-31), 10-K (reporting date: 2020-08-31), 10-K (reporting date: 2019-08-31).

2024 Calculations

¹ Debt to equity = Total debt ÷ Total Accenture plc shareholders’ equity
= 1,024,857 ÷ 28,288,646 = 0.04

² Adjusted debt to equity = Adjusted total debt ÷ Total Accenture plc shareholders’ equity
= 4,120,549 ÷ 28,288,646 = 0.15

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Solvency ratio	Description	The company
Adjusted debt-to-equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	Accenture PLC adjusted debt-to-equity ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level.

	Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Accenture plc	7,264,787)	6,871,557)	6,877,169)	5,906,809)	5,107,839)	4,779,112)
Total assets	55,932,363)	51,245,305)	47,263,390)	43,175,843)	37,078,593)	29,789,880)
Profitability Ratio
ROA¹	12.99%	13.41%	14.55%	13.68%	13.78%	16.04%
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Net income attributable to Accenture plc	7,264,787)	6,871,557)	6,877,169)	5,906,809)	5,107,839)	4,779,112)
Adjusted total assets	55,932,363)	51,245,305)	47,263,390)	43,175,843)	37,078,593)	33,629,436)
Profitability Ratio
Adjusted ROA²	12.99%	13.41%	14.55%	13.68%	13.78%	14.21%

Based on: 10-K (reporting date: 2024-08-31), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-08-31), 10-K (reporting date: 2021-08-31), 10-K (reporting date: 2020-08-31), 10-K (reporting date: 2019-08-31).

2024 Calculations

¹ ROA = 100 × Net income attributable to Accenture plc ÷ Total assets
= 100 × 7,264,787 ÷ 55,932,363 = 12.99%

² Adjusted ROA = 100 × Net income attributable to Accenture plc ÷ Adjusted total assets
= 100 × 7,264,787 ÷ 55,932,363 = 12.99%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Accenture PLC adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

Accenture PLC (NYSE:ACN)

Analysis of Operating Leases

Adjustments to Financial Statements for Operating Leases

Accenture PLC, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios for Operating Leases (Summary)

Accenture PLC, Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Debt to Equity

Adjusted Return on Assets (ROA)