Accenture PLC (NYSE:ACN)

Net operating profit after taxes (NOPAT)

The net operating profit after taxes shows a generally positive trend over the observed periods. Starting from approximately 6.01 billion USD in 2020, there is a steady increase reaching about 7.13 billion USD in 2022. Despite a slight decline to around 7.01 billion USD in 2023, the profit rebounds strongly, reaching approximately 7.52 billion USD in 2024 and further rising to 9.11 billion USD in 2025. This indicates an overall improving profitability with intermittent fluctuations.

Cost of capital

The cost of capital remains fairly stable throughout the years, fluctuating marginally between approximately 16.59% and 17.09%. There is a slight downward movement noted in 2025 to 16.59%, which may reflect changes in financing costs or risk perceptions.

Invested capital

Invested capital demonstrates a consistent upward trajectory, increasing from about 22.85 billion USD in 2020 to approximately 45.31 billion USD in 2025. This steady growth suggests ongoing investments or asset expansions over time, nearly doubling the invested capital within the six-year span.

Economic profit

Economic profit, calculated as net operating profit after taxes minus the cost of capital times invested capital, shows a declining trend initially, decreasing from roughly 2.13 billion USD in 2020 to around 1.20 billion USD in 2024. However, there is a recovery in 2025, with economic profit increasing to approximately 1.59 billion USD. The initial decline might imply that although operating profits increased, they did not fully offset the growing invested capital and its cost until the latter year where improved profitability enhanced economic profit again.

Net Income Attributable to Accenture plc

The net income shows a consistent upward trend over the observed periods. Starting at approximately 5.11 billion USD in 2020, it increased each year, reaching about 7.68 billion USD by 2025. This demonstrates steady profit growth with particularly notable increments between 2021 and 2022, and a sustained increase thereafter, suggesting effective management and operational performance.

Net Operating Profit After Taxes (NOPAT)

NOPAT also exhibits a general positive trend, increasing from about 6.01 billion USD in 2020 to over 9.11 billion USD in 2025. The growth, while mostly steady, includes some fluctuations, such as a slight dip in 2023 compared to 2022. Despite this, the overall pattern points to improved operational efficiency and profitability before dividends and other financial considerations.

General Observations

Both net income and NOPAT have increased significantly over the six-year span. The growth in NOPAT outpaces net income in later years, especially from 2023 to 2025, indicating that the company is generating a higher operating profit relative to its net income. This divergence might highlight changes in non-operating factors, taxes, or other income statement elements affecting net income.

The financial data reveals trends in tax-related expenses and cash operating taxes over a six-year period.

Income Tax Expense

The income tax expense shows an overall upward trajectory from 1,589,018 thousand US dollars in 2020 to an estimated 2,437,993 thousand US dollars in 2025. Notably, there was a significant increase in 2022, rising from approximately 1.77 million to 2.21 million thousand US dollars. After a slight decline in 2023, the expense resumes increasing in the subsequent years. This pattern suggests growth in taxable income or adjustments in tax rates impacting the company's tax obligations.

Cash Operating Taxes

Cash operating taxes also demonstrate a growth trend from 1,440,649 thousand US dollars in 2020 to a peak of about 2,446,374 thousand US dollars in 2022. However, unlike income tax expense, cash operating taxes decrease starting in 2023 and continue to decline through 2025, falling to around 2,085,412 thousand US dollars. This divergence may reflect changes in tax payment timing, tax planning strategies, or fluctuations in operating profitability affecting cash tax payments.

Overall, the data indicates increasing tax expenses with a more volatile pattern in cash operating taxes, which could be indicative of evolving tax liabilities versus actual cash payments, potentially influenced by corporate strategies or external economic factors.

Total Reported Debt & Leases

The total reported debt and leases demonstrated a fluctuating trend over the observed periods. Initially, there was a slight increase from 3,485,513 thousand USD in 2020 to 3,506,634 thousand USD in 2021, followed by a gradual decline in the subsequent years to 3,149,034 thousand USD by 2023. However, a significant increase occurred thereafter, with debt rising sharply to 4,120,549 thousand USD in 2024 and nearly doubling to 8,182,866 thousand USD in 2025. This suggests increased leverage or financing activities particularly in the last two years of the analysis period.

Total Accenture plc Shareholders’ Equity

Shareholders’ equity consistently increased throughout the entire timeframe. The equity value grew steadily from 17,000,536 thousand USD in 2020 to 19,529,454 thousand USD in 2021 and continued this upward trajectory each year, reaching 31,195,446 thousand USD in 2025. This consistent rise indicates a strengthening capital base and potentially retained earnings or equity issuances contributing to shareholder value over time.

Invested Capital

Invested capital showed a clear and sustained upward trend across the periods examined. Starting at 22,846,720 thousand USD in 2020, it increased steadily each year, culminating at 45,311,761 thousand USD in 2025. The growth in invested capital outpaced the growth in shareholders’ equity, reflecting expansion or reinvestment in operational assets, possibly funded by the increased debt observed towards the end of the period.

The analysis of the annual financial data reveals several notable trends in the company’s economic performance over the assessed periods.

Economic Profit

The economic profit shows a fluctuating trend, peaking in the 2021 fiscal year, followed by a continuous decline until 2024. Although there is a slight recovery observed in the 2025 period, the value remains below the earlier peak, indicating variability in the company’s ability to generate profit above its cost of capital.

Invested Capital

The invested capital steadily increases across all periods, with a particularly significant jump in the last period. This consistent growth suggests ongoing investments and asset accumulation, reflecting the company’s pursuit of expansion or enhancement of operational capacity.

Economic Spread Ratio

There is a clear downward trend in the economic spread ratio from 2020 to 2024, declining from over 9% to just above 3%. This decrease indicates diminishing returns on capital invested relative to the company’s cost of capital. The slight uptick in the final period points to a modest improvement in economic returns but remains considerably lower than earlier years.

In summary, the company has expanded its invested capital considerably over time, but economic profit and the economic spread ratio have both declined, suggesting reduced efficiency or profitability in the use of invested capital. The recent marginal improvement in economic spread may signal early signs of recovery or more effective capital allocation moving forward.

The financial data reveals several notable trends over the analyzed periods.

Economic Profit

Economic profit exhibits a declining trend from 2020 to 2024, dropping from approximately 2.13 billion USD in 2020 to around 1.20 billion USD in 2024. However, a rebound occurs in 2025, with economic profit increasing to about 1.59 billion USD. This indicates a period of reduced economic profitability, followed by some recovery in the final year.

Adjusted Revenues

Adjusted revenues show a consistent upward trajectory throughout the entire period. Starting at approximately 44.9 billion USD in 2020, revenues steadily increase each year, reaching approximately 70.6 billion USD by 2025. This continuous growth reflects expansion in sales or billing levels over time.

Economic Profit Margin

The economic profit margin declines notably from 4.74% in 2020 to a low of 1.85% in 2024. In 2025, a slight recovery brings the margin up to 2.26%. This diminishing margin despite increasing revenues suggests that costs or capital charges have risen disproportionately, impacting net economic returns relative to revenue.

Overall, while the company demonstrates robust revenue growth across the periods, profitability as measured by economic profit and its margin has decreased significantly before partially recovering. This pattern could indicate challenges in maintaining cost-efficiency or increased capital intensity relative to revenues, which should be further analyzed to understand underlying drivers and implications for future performance.