Accenture Balance Sheet Balance Sheet All numbers in thousands 8/31/2019 8/31/2020 37,078,593 8/31/2018 24,449,083 EXF 8/31/2017 22,689,890 29,789,880 Breakdown Total Assets > Total Liabilities Net Mi.. > Total Equity Gross Min... 19,579,420 14,962,189 13,724,495 12,979,690 17,499,173 14,827,691 10,724,588 9,710,200 17,054,588 14,425,255 10,384,429 8,971,640 Total Capitalization Common Stock Equity 17,000,536 14,409,008 10,364,753 8,949,477 3,423,641 8,261,498 7,362,679 4,294,631 3,236,743 5,087,166 4,388,705 3,433,808 2,273,010 17,062,408 14,431,666 10,389,766 8,974,547 Capital Lease Obligations Net Tangible Assets Working Capital Invested Capital Tangible Book Value Total Debt Share Issued Ordinary Shares Number Treasury Shares Number 8,261,498 7,362,679 4,294,631 3,236,743 3,485,513 22,658 25,013 25,070 658,549 654,739 663,328 638,966 634,166 635,774 639,034 615,557 24,383 18,965 24,293 23,409 Statement Accenture Breakdown Income 8/31/2020 TTM 8/31/2019 8/31/2018 > Total Revenue 47,949,376 44,327,039 43,215,013 41,603,428 Cost of Revenue 32,610,924 30,350,881 29,900,325 29,160,515 Gross Profit 15,338,452 13,976,158 13,314,688 12,442.913 > Operating Expense 8,130,909 7,462,514 7,009,614 6,601,872 Operating Income 7,207,543 6,513,644 6,305,074 5,841,041 > Net Non Operating Int... -29,086 36,260 64,545 36,798 > Other Income Expense 448,209 224,427 -117,822 -69,746 Pretax Income 7,626,666 6,774,331 6,251,797 5,808,093 Tax Provision 1,768,120 1,589,018 1,405,556 1,593,499 > Net Income Common ... 5,778,490 5,107,839 4,779,112 4,059,907 Average Dilution Earnings 6,535 6,325 6,694 95,063 Diluted NI Available to C... 5,785,025 5,114,164 4,785,806 4,154,970 Basic EPS 8.03 7.49 6.46 Diluted EPS 7.89 7.36 6.34 Basic Average Shares 636,300 638,098 628,452 647,797 650,205 655,296 Diluted Average Shares Total Operating Income... 7,207,543 6,513,644 6,305,074 5,841,041 Total Expenses 40,741,833 37,813,395 36,909,939 35,762,387 Net Income from Contin... 5,778,490 5,107,839 4,779,112 4,059,907 Normalized Income 5,778,490 5,107,839 4.779.112 4,059,907 Interest Income 31,498 69,331 87,508 56,337 Interest Expense 60,584 33,071 22,963 19,539 Net Interest Income -29,086 36,260 64,545 36,798 EBIT 7,687,250 6,807,402 6,274,760 5,827,632 EBITDA 9,579,101 Reconciled Cost of Reve... 32,610,924 30,350,881 29,900,325 29,160,515 Reconciled Depreciation 1,891,851 1,773,124 892,760 926,776 Net Income from Contin... 5,778,490 5,107,839 4,779,112 4,059,907 Total Unusual Items Excl... 0 0 Total Unusual Items 0 0 Normalized EBITDA 9,579,101 8,580,526 7,167,520 6,754,408 Tax Rate for Calcs 0 0 0 0 Tax Effect of Unusual Ite... 0 0 0 0 12/31/2019 152,186,000 12/31/2018 123,382,000 131,201,000 106,452,000 IBM BALANCE SHEET Balance Sheet All numbers in thousands Breakdown 12/31/2020 > Total Assets 155,971,000 > Total Liabilities Net Mi... 135,245,000 > Total Equity Gross Min... 20,726,000 Total Capitalization 74,952,000 Common Stock Equity 20,597,000 Capital Lease Obligations 4,931,000 Net Tangible Assets -52,815,000 20,985,000 16,930,000 74,943,000 52,401,000 20,841,000 16,796,000 5,259,000 -52,617,000 -22,557,000 Working Capital -704,000 719,000 10,919,000 82,135,000 83,740,000 62,608,000 Invested Capital Tangible Book Value Total Debt -52,815,000 -52,617,000 -22,557,000 66,469,000 68,158,000 45,812,000 Net Debt 48,326,000 54,727,000 34,433,000 2,242,969 2,237,997 2,233,427 Share Issued Ordinary Shares Number Treasury Shares Number 892,653 887,110 892,479 1,350,316 1,350,887 1,340,948 IBM Income Statement Income Statement All numbers in thousands EXF Breakdown TTM 12/31/2020 12/31/2019 12/31/2018 > Total Revenue 73,780,000 73,621,000 77,147,000 79,590,000 Cost of Revenue 37,922,000 38.046,000 40,659,000 42,655,000 Gross Profit 35,857,000 35,575,000 36,488,000 36,936,000 > Operating Expense 27,875,000 28,680,000 25,857,000 23,651,000 Operating Income 7,982,000 6,895,000 10,631,000 13,285,000 > Net Non Operating Int... -1,174,000 -1,183,000 -995,000 -459,000 > Other Income Expense -1,215,000 -1,074,000 529,000 -1,482,000 Pretax Income 5,591,000 4,637,000 10,166,000 11,342,000 Tax Provision 311,000 -864,000 731,000 2,619,000 > Net Income Common ... 5,370,000 5,590,000 9,431,000 8,728,000 Average Dilution Earnings 0 -2,000 0 -6,000 Diluted NI Available to C... 5,370,000 5,588,000 9,431,000 8,722,000 Basic EPS 6.28 10.63 9.57 Diluted EPS 6.23 10.56 9.52 Basic Average Shares 890,300 887,200 912,000 Diluted Average Shares 896,600 892,800 916,300 Total Expenses 65,797,000 66,726,000 66,516,000 66,306,000 Net Income from Contin.. 5,370,000 5,590,000 9,431,000 8,728,000 Normalized Income 5,446,266 5,574,000 9,242,904 8,702,237 Interest Income 68,000 105,000 349,000 264,000 Interest Expense 1,242,000 1,288,000 1,344,000 723,000 Net Interest Income -1,174,000 -1,183,000 -995,000 -459,000 EBIT 6,833,000 5,925,000 11,510,000 12,065,000 EBITDA 13,566,000 Reconciled Cost of Reve... 32,305,000 32,474,000 35,362,000 38,610,000 Reconciled Depreciation 6,733,000 6,695,000 6,059,000 4,480,000 Net Income from Contin... 5,281,000 5,501,000 9,435,000 8,723,000 Total Unusual Items Excl... -175,000 -100,000 207,000 27,000 Total Unusual Items -175,000 -100,000 207,000 27.000 Normalized EBITDA 13.741,000 12,720,000 17,362,000 16,518,000 Tax Rate for Calcs 0 0 0 0 Tax Effect of Unusual Ite... -9,734 -27,000 14,904 6,237 Use the balance sheet and income statement data you gathered to complete this section. Complete a simple financial statement analysis of the IBM and Accenture (calculating and discussing two ratios under each Liquidity, Profitability) Discuss how IBM's financial position has changed over the three most recent years for which you have data. Compare the IBM's results to those of its Accenture. Discuss the changes in relation to the ratio categories discussed Accenture Balance Sheet Balance Sheet All numbers in thousands 8/31/2019 8/31/2020 37,078,593 8/31/2018 24,449,083 EXF 8/31/2017 22,689,890 29,789,880 Breakdown Total Assets > Total Liabilities Net Mi.. > Total Equity Gross Min... 19,579,420 14,962,189 13,724,495 12,979,690 17,499,173 14,827,691 10,724,588 9,710,200 17,054,588 14,425,255 10,384,429 8,971,640 Total Capitalization Common Stock Equity 17,000,536 14,409,008 10,364,753 8,949,477 3,423,641 8,261,498 7,362,679 4,294,631 3,236,743 5,087,166 4,388,705 3,433,808 2,273,010 17,062,408 14,431,666 10,389,766 8,974,547 Capital Lease Obligations Net Tangible Assets Working Capital Invested Capital Tangible Book Value Total Debt Share Issued Ordinary Shares Number Treasury Shares Number 8,261,498 7,362,679 4,294,631 3,236,743 3,485,513 22,658 25,013 25,070 658,549 654,739 663,328 638,966 634,166 635,774 639,034 615,557 24,383 18,965 24,293 23,409 Statement Accenture Breakdown Income 8/31/2020 TTM 8/31/2019 8/31/2018 > Total Revenue 47,949,376 44,327,039 43,215,013 41,603,428 Cost of Revenue 32,610,924 30,350,881 29,900,325 29,160,515 Gross Profit 15,338,452 13,976,158 13,314,688 12,442.913 > Operating Expense 8,130,909 7,462,514 7,009,614 6,601,872 Operating Income 7,207,543 6,513,644 6,305,074 5,841,041 > Net Non Operating Int... -29,086 36,260 64,545 36,798 > Other Income Expense 448,209 224,427 -117,822 -69,746 Pretax Income 7,626,666 6,774,331 6,251,797 5,808,093 Tax Provision 1,768,120 1,589,018 1,405,556 1,593,499 > Net Income Common ... 5,778,490 5,107,839 4,779,112 4,059,907 Average Dilution Earnings 6,535 6,325 6,694 95,063 Diluted NI Available to C... 5,785,025 5,114,164 4,785,806 4,154,970 Basic EPS 8.03 7.49 6.46 Diluted EPS 7.89 7.36 6.34 Basic Average Shares 636,300 638,098 628,452 647,797 650,205 655,296 Diluted Average Shares Total Operating Income... 7,207,543 6,513,644 6,305,074 5,841,041 Total Expenses 40,741,833 37,813,395 36,909,939 35,762,387 Net Income from Contin... 5,778,490 5,107,839 4,779,112 4,059,907 Normalized Income 5,778,490 5,107,839 4.779.112 4,059,907 Interest Income 31,498 69,331 87,508 56,337 Interest Expense 60,584 33,071 22,963 19,539 Net Interest Income -29,086 36,260 64,545 36,798 EBIT 7,687,250 6,807,402 6,274,760 5,827,632 EBITDA 9,579,101 Reconciled Cost of Reve... 32,610,924 30,350,881 29,900,325 29,160,515 Reconciled Depreciation 1,891,851 1,773,124 892,760 926,776 Net Income from Contin... 5,778,490 5,107,839 4,779,112 4,059,907 Total Unusual Items Excl... 0 0 Total Unusual Items 0 0 Normalized EBITDA 9,579,101 8,580,526 7,167,520 6,754,408 Tax Rate for Calcs 0 0 0 0 Tax Effect of Unusual Ite... 0 0 0 0 12/31/2019 152,186,000 12/31/2018 123,382,000 131,201,000 106,452,000 IBM BALANCE SHEET Balance Sheet All numbers in thousands Breakdown 12/31/2020 > Total Assets 155,971,000 > Total Liabilities Net Mi... 135,245,000 > Total Equity Gross Min... 20,726,000 Total Capitalization 74,952,000 Common Stock Equity 20,597,000 Capital Lease Obligations 4,931,000 Net Tangible Assets -52,815,000 20,985,000 16,930,000 74,943,000 52,401,000 20,841,000 16,796,000 5,259,000 -52,617,000 -22,557,000 Working Capital -704,000 719,000 10,919,000 82,135,000 83,740,000 62,608,000 Invested Capital Tangible Book Value Total Debt -52,815,000 -52,617,000 -22,557,000 66,469,000 68,158,000 45,812,000 Net Debt 48,326,000 54,727,000 34,433,000 2,242,969 2,237,997 2,233,427 Share Issued Ordinary Shares Number Treasury Shares Number 892,653 887,110 892,479 1,350,316 1,350,887 1,340,948 IBM Income Statement Income Statement All numbers in thousands EXF Breakdown TTM 12/31/2020 12/31/2019 12/31/2018 > Total Revenue 73,780,000 73,621,000 77,147,000 79,590,000 Cost of Revenue 37,922,000 38.046,000 40,659,000 42,655,000 Gross Profit 35,857,000 35,575,000 36,488,000 36,936,000 > Operating Expense 27,875,000 28,680,000 25,857,000 23,651,000 Operating Income 7,982,000 6,895,000 10,631,000 13,285,000 > Net Non Operating Int... -1,174,000 -1,183,000 -995,000 -459,000 > Other Income Expense -1,215,000 -1,074,000 529,000 -1,482,000 Pretax Income 5,591,000 4,637,000 10,166,000 11,342,000 Tax Provision 311,000 -864,000 731,000 2,619,000 > Net Income Common ... 5,370,000 5,590,000 9,431,000 8,728,000 Average Dilution Earnings 0 -2,000 0 -6,000 Diluted NI Available to C... 5,370,000 5,588,000 9,431,000 8,722,000 Basic EPS 6.28 10.63 9.57 Diluted EPS 6.23 10.56 9.52 Basic Average Shares 890,300 887,200 912,000 Diluted Average Shares 896,600 892,800 916,300 Total Expenses 65,797,000 66,726,000 66,516,000 66,306,000 Net Income from Contin.. 5,370,000 5,590,000 9,431,000 8,728,000 Normalized Income 5,446,266 5,574,000 9,242,904 8,702,237 Interest Income 68,000 105,000 349,000 264,000 Interest Expense 1,242,000 1,288,000 1,344,000 723,000 Net Interest Income -1,174,000 -1,183,000 -995,000 -459,000 EBIT 6,833,000 5,925,000 11,510,000 12,065,000 EBITDA 13,566,000 Reconciled Cost of Reve... 32,305,000 32,474,000 35,362,000 38,610,000 Reconciled Depreciation 6,733,000 6,695,000 6,059,000 4,480,000 Net Income from Contin... 5,281,000 5,501,000 9,435,000 8,723,000 Total Unusual Items Excl... -175,000 -100,000 207,000 27,000 Total Unusual Items -175,000 -100,000 207,000 27.000 Normalized EBITDA 13.741,000 12,720,000 17,362,000 16,518,000 Tax Rate for Calcs 0 0 0 0 Tax Effect of Unusual Ite... -9,734 -27,000 14,904 6,237 Use the balance sheet and income statement data you gathered to complete this section. Complete a simple financial statement analysis of the IBM and Accenture (calculating and discussing two ratios under each Liquidity, Profitability) Discuss how IBM's financial position has changed over the three most recent years for which you have data. Compare the IBM's results to those of its Accenture. Discuss the changes in relation to the ratio categories discussed