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ACN (Accenture) Degree of Operating Leverage : 2.61 (As of Feb. 2025)


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What is Accenture Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Accenture's Degree of Operating Leverage for the quarter that ended in Feb. 2025 was 2.61. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Accenture's Degree of Operating Leverage or its related term are showing as below:

ACN's Degree of Operating Leverage is ranked worse than
71.52% of 2665 companies
in the Software industry
Industry Median: 0.79 vs ACN: 2.61

Accenture Degree of Operating Leverage Historical Data

The historical data trend for Accenture's Degree of Operating Leverage 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 Degree of Operating Leverage Chart

Accenture Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.30 1.06 0.83 -0.15 5.08

Accenture Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
Degree of Operating Leverage 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 0.12 -0.64 5.08 3.57 2.61

Competitive Comparison of Accenture's Degree of Operating Leverage

For the Information Technology Services subindustry, Accenture's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage 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 Degree of Operating Leverage Distribution in the Software Industry

For the Software industry and Technology sector, Accenture's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Accenture's Degree of Operating Leverage falls into.


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Accenture Degree of Operating Leverage Calculation

Accenture's Degree of Operating Leverage for the quarter that ended in Feb. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 10359.83 (Feb. 2025) / 9356.611 (Feb. 2024) - 1 )/( 67221.493 (Feb. 2025) / 64573.602 (Feb. 2024) - 1 )
=0.1072/0.041
=2.61***

* 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.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Accenture  (NYSE:ACN) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Accenture Degree of Operating Leverage Related Terms

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


Accenture Business Description

Industry
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
John F Walsh officer: Grp Chief Exec-Com, Med & Tech C/O ACCENTURE, 161 N. CLARK STREET, CHICAGO IL 60601
Manish Sharma officer: Chief Operating Officer 161 NORTH CLARK, CHICAGO IL 60601
Joel Unruch officer: General Counsel, Sec & CCO C/O ACCENTURE, 161 N. CLARK STREET, CHICAGO IL 60601
Julie Spellman Sweet officer: General Counsel, Sec & CCO 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
Kathleen R Mcclure officer: Chief Financial Officer C/O ACCENTURE, 161 N. CLARK STREET, CHICAGO IL 60601
Ellyn Shook officer: Chief Human Resources Officer C/O ACCENTURE, 161 N. CLARK STREET, CHICAGO IL 60601
Leonardo Framil officer: CEO-Growth Markets 500 W. MADISON STREET, CHICAGO IL 60661
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
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