Paper Example. Cash Flow Statement of Accenture PLC Company

Accenture reported total cash flows from operating activities of $4973039 thousand in 2017, which increased to $6026691 thousand in 2018, translating to an increment of 21.2%. In 2019, the total cash flow from operations improved by 10% to $6626953 thousand (Annual Report, 2019). The enlargement of the cash inflow in 2018 compared with 2017 was due to a significant increase in the net income reported figure in 2018 of 13.16%. The slowed growth in the operating net cash flow from operations results from the slowed increase in the total revenue of 3.97% in 2019 compared with a growth rate reported in 2018 of 13.16%. Compared with 2018. In 2019, the firm recorded cash outflow from differed tax liability of $9,360 thousand, which was a taxable income in 2018 of $94,000 thousand in 2018 and cash outflow $364,133 in 2017 (Annual Report, 2018(. It is one of the reasons that accelerated the massive net cash inflow from operations in 2018 compared with the other two years. The other reason that caused a higher net cash flow from operations in 2019 compared with 2018 is the cash inflows from the accounts payables, which was a cash outflow in 2018, among other reasons.

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In 2017, 2018, and 2017, Accenture reported net cash flows used in investing activities of 2233879 thousand, $1249604 thousand, and $1755576 thousand, respectively (Annual Report, 2019). The net cash outflow used in investing activities by Accenture reduced in 2018 from 2017 by 44.1%. However, the cash outflows consumed by investing activities raised in 2019 by 40.5% compared with the total used in 2018. The amount spent by Accenture on plant, property, and equipment (PPE) increased in 2018 by 20% from $515919 thousand in 2017 to $619187 thousand. The company recorded a decline in the total cash outflow used in PPE in 2019 of 3.26% to $599009 thousand. Accenture committed a considerable amount of cash to purchase and acquire businesses in 2017 of $1704188 thousand and $657546 thousand in 2018, which was the primary cause of the significant change reported in 2018 of 44.1%. In 2019, the amount committed to acquisition and business purchases rose to $1193071 thousand in 2019 (2019).

The firm reported net cash outflows from financing activities in all three years. In 2018 the total amount used in financing activities grew by 4.2% to $3709028 thousand in 2018 from $$3560235 thousand in 2017. In 2019, the amount dedicated to financing activities rose by 1.6% to $3767171 thousand (Annual Report, 2019). The primary cause of the difference in cash is the cash utilized in the payment of dividends. Cash dividends paid increased from one year to the other. In 2018, the figure of cash dividends improved from $1567578 thousand in 2017 to $1708724 thousand in 2018, translating to a 9% increment. Accenture increased cash dividends in 2019 to $1864353 thousand, which is an expansion of 9.111%.

The net change in cash in 2017, 2018, and 2019 was ($778749) thousands, $934500 thousand, $1065493 thousand, respectively. The net change was negative in 2017 and positive in 2018 and 2919. At the end of the year, Accenture cash balance increased by 22.6% in 2018 from $$4126860 thousand in 2017 to $5061360 thousand. The growth rate of the ending cash balance in 2019 was 21.1% to $6126853 thousand (Annual Report, 2019).

Reference

Annual Report. (2019). Accenture-Fiscal-2019-Annual-Report. Available at: https://www.accenture.com/_acnmedia/Accenture/Conversion-Assets/DotCom/documets