Revenue Analysis
ACN’s Total Revenue shows a growth trend from $15.82 billion in February 2023 to $15.99 billion in August 2023, reaching $16.22 billion by November 2023 and finally $15.8 billion in February 2024. The Operating Revenue aligns perfectly with the total revenue figures, indicating all revenues are from core business operations without any extraneous income sources. The Gross Profit similarly increased from $4.83 billion in February 2023 to $5.48 billion in November 2023, demonstrating improved revenue efficiency before stabilizing around $4.9 billion by February 2024.
Cost Management
ACN’s Cost of Revenue remained fairly stable, hovering around $10.9 billion to $11.0 billion across the reviewed periods. The Operating Expenses, which include selling, general, and administrative expenses as well as other operating expenses, showed a slight fluctuation but generally remained around $2.8 billion to $2.9 billion. Total Total Expenses, including cost of revenue, also followed a similarly stable pattern.
Profitability Analysis
Over the periods, EBITDA ranged from approximately $2.3 billion in early 2023 to around $2.97 billion by November 2023. The Operating Income showed a consistent improvement moving from $1.94 billion up to $2.56 billion in the same timeframe before a slight decrease to $2.05 billion by February 2024. The Pretax Income and Net Income charts indicate a similar trend, with net income increasing from $1.52 billion to $1.97 billion and then slightly decreasing to $1.68 billion by February 2024.
Cash Flow Indicators
Reconciled Depreciation expenses were fairly consistent, ranging from $343 million to around $375 million. The Interest Expense remained under control, only slightly fluctuating around $10 million to $17 million, signifying manageable debt costs.
Taxation
ACN’s Tax Rate for calculations has shown fluctuations, decreasing from about 28.12% in August 2023 to 18.4% by February 2024. The Tax Provision amounts varied in line with pre-tax earnings, recording a tax provision of $386 million in February 2024, compared to $606 million in November 2023. Notably, there were no recorded effects of unusual items on taxes through the periods.
Shareholder Metrics
The Diluted EPS showed an increase from 2.15 in August 2023 to 3.1 in November 2023 before reducing to 2.63 by February 2024. Similar trends were visible in Basic EPS. The Average Dilution Earnings were minimal, suggesting most income attributes directly to common stockholders. Net Income Available to Common Stockholders had shown growth, reflective in the EPS trends.
Conclusion
ACN has demonstrated consistently strong revenue and profitability, with effective management of expenses and cost of revenue. The financials show a healthy growth trajectory albeit with some fluctuations in profitability and EPS in the most recent quarter. Moving forward, ACN should focus on maximizing operational efficiencies and perhaps leverage on opportunities to optimize their taxation strategies given the fluctuating rates observed.