Examine annual reports for five most recent years for the Accenture PLC.
Part A. Estimate return on capital (adjusted for leases) in the most recent year and weighted average cost of capital. Report whether the firm creates or destroys value.
Part B. Estimate current ratio and solvency ratio in the most recent year.
Part C. Compare performance of Accenture PLC with one other firm in the same industry in the last year. Comment on your findings. Explain whether your firm outperforms the industry or underperforms it.
Note: comparable firms can be found in Google Finance or Yahoo!Finance. In Google Finance, click on “related companies” in the menu on the left. Yahoo! Finance will provide a longer list of comparable companies: choose “competitors” in the menu on the left, then, choose “industry” in the table “direct competitor comparison”. On the next page, click on “sector” in the middle of the page, then choose industry of your choice. You can sort companies by market capitalization and choose comparable firms. While Yahoo!Finance process is lengthier, it also provides you with a wider choice of firms.
Pard D. Perform a snapshot analysis of a firm.