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ACN (Accenture) Altman Z-Score : 7.18 (As of Oct. 31, 2024)


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What is Accenture Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Good Sign:

Altman Z-score of 7.21 is strong.

Accenture has a Altman Z-Score of 7.18, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Accenture's Altman Z-Score or its related term are showing as below:

ACN' s Altman Z-Score Range Over the Past 10 Years
Min: 6.55   Med: 7.13   Max: 7.86
Current: 7.21

During the past 13 years, Accenture's highest Altman Z-Score was 7.86. The lowest was 6.55. And the median was 7.13.


Accenture Altman Z-Score Historical Data

The historical data trend for Accenture's Altman Z-Score 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 Altman Z-Score Chart

Accenture Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.10 7.86 7.05 7.42 7.15

Accenture Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
Altman Z-Score 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 7.42 7.74 8.59 6.56 7.15

Competitive Comparison of Accenture's Altman Z-Score

For the Information Technology Services subindustry, Accenture's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution in the Software Industry

For the Software industry and Technology sector, Accenture's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Accenture's Altman Z-Score falls into.



Accenture Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Accenture's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.0336+1.4*0.4127+3.3*0.1745+0.6*8.0504+1.0*1.1603
=7.18

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Aug. 2024:
Total Assets was $55,932 Mil.
Total Current Assets was $20,858 Mil.
Total Current Liabilities was $18,976 Mil.
Retained Earnings was $23,082 Mil.
Pre-Tax Income was 2332.561 + 2654.37 + 2095.739 + 2616.653 = $9,699 Mil.
Interest Expense was -22.835 + -11.334 + -10.305 + -14.495 = $-59 Mil.
Revenue was 16405.819 + 16466.828 + 15799.514 + 16224.303 = $64,896 Mil.
Market Cap (Today) was $215,463 Mil.
Total Liabilities was $26,764 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(20857.781 - 18976.127)/55932.363
=0.0336

X2=Retained Earnings/Total Assets
=23082.423/55932.363
=0.4127

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(9699.323 - -58.969)/55932.363
=0.1745

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=215462.724/26764.115
=8.0504

X5=Revenue/Total Assets
=64896.464/55932.363
=1.1603

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Accenture has a Altman Z-Score of 7.18 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Accenture  (NYSE:ACN) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Accenture Altman Z-Score Related Terms

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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