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ACN (Accenture) ROE % : 24.05% (As of Aug. 2024)


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What is Accenture ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Accenture's annualized net income for the quarter that ended in Aug. 2024 was $6,737 Mil. Accenture's average Total Stockholders Equity over the quarter that ended in Aug. 2024 was $28,017 Mil. Therefore, Accenture's annualized ROE % for the quarter that ended in Aug. 2024 was 24.05%.

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

ACN' s ROE % Range Over the Past 10 Years
Min: 26.8   Med: 35.81   Max: 60.08
Current: 26.8

During the past 13 years, Accenture's highest ROE % was 60.08%. The lowest was 26.80%. And the median was 35.81%.

ACN's ROE % is ranked better than
88.67% of 2638 companies
in the Software industry
Industry Median: 4.28 vs ACN: 26.80

Accenture ROE % Historical Data

The historical data trend for Accenture's ROE % 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 ROE % Chart

Accenture Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 32.52 32.34 33.04 28.75 26.92

Accenture Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
ROE % 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 21.53 30.15 24.91 28.17 24.05

Competitive Comparison of Accenture's ROE %

For the Information Technology Services subindustry, Accenture's ROE %, along with its competitors' market caps and ROE % 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 ROE % Distribution in the Software Industry

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

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



Accenture ROE % Calculation

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

ROE %=Net Income (A: Aug. 2024 )/( (Total Stockholders Equity (A: Aug. 2023 )+Total Stockholders Equity (A: Aug. 2024 ))/ count )
=7264.787/( (25692.839+28288.646)/ 2 )
=7264.787/26990.7425
=26.92 %

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

ROE %=Net Income (Q: Aug. 2024 )/( (Total Stockholders Equity (Q: May. 2024 )+Total Stockholders Equity (Q: Aug. 2024 ))/ count )
=6737.204/( (27744.489+28288.646)/ 2 )
=6737.204/28016.5675
=24.05 %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Aug. 2024) net income data. ROE % is displayed in the 30-year financial page.


Accenture  (NYSE:ACN) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Aug. 2024 )
=Net Income/Total Stockholders Equity
=6737.204/28016.5675
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(6737.204 / 65623.276)*(65623.276 / 55036.841)*(55036.841 / 28016.5675)
=Net Margin %*Asset Turnover*Equity Multiplier
=10.27 %*1.1924*1.9644
=ROA %*Equity Multiplier
=12.25 %*1.9644
=24.05 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Aug. 2024 )
=Net Income/Total Stockholders Equity
=6737.204/28016.5675
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (6737.204 / 9330.244) * (9330.244 / 9414.672) * (9414.672 / 65623.276) * (65623.276 / 55036.841) * (55036.841 / 28016.5675)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7221 * 0.991 * 14.35 % * 1.1924 * 1.9644
=24.05 %

Note: The net income data used here is four times the quarterly (Aug. 2024) net income data. The Revenue data used here is four times the quarterly (Aug. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Accenture ROE % Related Terms

Thank you for viewing the detailed overview of Accenture's ROE % 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