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ACN (Accenture) Operating Margin % : 14.35% (As of Aug. 2024)


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What is Accenture Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Accenture's Operating Income for the three months ended in Aug. 2024 was $2,354 Mil. Accenture's Revenue for the three months ended in Aug. 2024 was $16,406 Mil. Therefore, Accenture's Operating Margin % for the quarter that ended in Aug. 2024 was 14.35%.

The historical rank and industry rank for Accenture's Operating Margin % or its related term are showing as below:

ACN' s Operating Margin % Range Over the Past 10 Years
Min: 13.48   Med: 14.49   Max: 15.21
Current: 14.79


ACN's Operating Margin % is ranked better than
81.57% of 2762 companies
in the Software industry
Industry Median: 3.67 vs ACN: 14.79

Accenture's 5-Year Average Operating Margin % Growth Rate was -0.40% per year.

Accenture's Operating Income for the three months ended in Aug. 2024 was $2,354 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Aug. 2024 was $9,596 Mil.


Accenture Operating Margin % Historical Data

The historical data trend for Accenture's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Accenture Operating Margin % Chart

Accenture Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.69 15.08 15.21 13.74 14.79

Accenture Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.97 15.81 12.95 15.98 14.35

Competitive Comparison of Accenture's Operating Margin %

For the Information Technology Services subindustry, Accenture's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Accenture's Operating Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Accenture's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Accenture's Operating Margin % falls into.



Accenture Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Accenture's Operating Margin % for the fiscal year that ended in Aug. 2024 is calculated as

Operating Margin %=Operating Income (A: Aug. 2024 ) / Revenue (A: Aug. 2024 )
=9595.847 / 64896.464
=14.79 %

Accenture's Operating Margin % for the quarter that ended in Aug. 2024 is calculated as

Operating Margin %=Operating Income (Q: Aug. 2024 ) / Revenue (Q: Aug. 2024 )
=2353.668 / 16405.819
=14.35 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Accenture  (NYSE:ACN) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Accenture Operating Margin % Related Terms

Thank you for viewing the detailed overview of Accenture's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Accenture Business Description

Address
1 Grand Canal Square, Grand Canal Harbour, Dublin, IRL, 2
Accenture is a leading global IT-services firm that provides consulting, strategy, and technology and operational services. These services run the gamut from aiding enterprises with digital transformation to procurement services to software system integration. The company provides its IT offerings to a variety of sectors, including communications, media and technology, financial services, health and public services, consumer products, and resources. Accenture employs just under 500,000 people throughout 200 cities in 51 countries.
Executives
Ellyn Shook officer: Chief Human Resources Officer C/O ACCENTURE, 161 N. CLARK STREET, CHICAGO IL 60601
Joel Unruch officer: General Counsel, Sec & CCO C/O ACCENTURE, 161 N. CLARK STREET, CHICAGO IL 60601
Kathleen R Mcclure officer: Chief Financial Officer C/O ACCENTURE, 161 N. CLARK STREET, CHICAGO IL 60601
Leonardo Framil officer: CEO-Growth Markets 500 W. MADISON STREET, CHICAGO IL 60661
Julie Spellman Sweet officer: General Counsel, Sec & CCO C/O ACCENTURE, 161 N. CLARK STREET, CHICAGO IL 60601
Jean-marc Ollagnier officer: Group Chief Exec-Resources C/O ACCENTURE, 161 N. CLARK STREET, CHICAGO IL 60601
Gilles Pelisson director 161 N. CLARK STREET, C/O ACCENTURE CORPORATE SECRETARY, CHICAGO IL 60601
Manish Sharma officer: Chief Operating Officer 161 NORTH CLARK, CHICAGO IL 60601
John F Walsh officer: Grp Chief Exec-Com, Med & Tech C/O ACCENTURE, 161 N. CLARK STREET, CHICAGO IL 60601
Melissa A Burgum officer: Chief Accounting Officer C/O SRA INTERNATIONAL, INC., 4300 FAIR LAKES COURT, FAIRFAX VA 22033
Jaime Ardila director 300 RENAISSANCE CENTER, M/C: 482-C25-A36, DETROIT MI 48265-3000
Paula A Price director ONE CVS DRIVE, WOONSOCKET RI 02895
Alan C. Jope director 500 W. MADISON STREET, CHICAGO IL 60661
James O Etheredge officer: Group Chief Exec-North America C/O ACCENTURE, 161 N. CLARK STREET, CHICAGO IL 60601
Gianfranco Casati officer: Group Chief Executive?Products C/O ACCENTURE, 161 N. CLARK STREET, CHCIAGO IL 60601