Summary
Accenture plc (ACN) filed an 8-K on June 25, 2020, to report its third-quarter fiscal year 2020 financial results, which concluded on May 31, 2020. The filing primarily consists of a furnished news release detailing these results. Investors should note that Accenture utilizes and discloses certain non-GAAP financial measures, including free cash flow and percentage changes in revenues and bookings on a local currency basis, to provide additional insights into the company's performance and liquidity. The company management believes these non-GAAP metrics offer a more meaningful comparison of operational trends by excluding foreign currency fluctuations and capital expenditures' impact on cash flow.
Key Highlights
- 1Accenture announced its Q3 fiscal 2020 financial results via a news release filed on June 25, 2020.
- 2The reporting period for these results was the quarter ending May 31, 2020.
- 3The company provided non-GAAP financial measures, including free cash flow.
- 4Free cash flow is defined as operating cash flow net of property and equipment additions.
- 5Accenture also reported percentage changes in revenues and bookings on a local currency basis.
- 6These local currency figures exclude the impact of foreign currency exchange rate fluctuations.
- 7Reconciliations between GAAP and non-GAAP measures are available in the furnished news release.
Frequently Asked Questions
The primary purpose of this 8-K filing is to announce Accenture's financial results for its third quarter of fiscal year 2020, which ended on May 31, 2020, through an attached news release.
Accenture provides two key non-GAAP financial measures: free cash flow (operating cash flow minus capital expenditures) and percentage changes in revenues and bookings on a local currency basis, which exclude the impact of foreign exchange rate fluctuations.
Accenture's management believes these non-GAAP measures provide meaningful additional information about the company's liquidity (free cash flow) and facilitates a clearer comparison of revenue and booking trends by removing the volatility of foreign currency exchange rates.
The detailed financial results and reconciliations of non-GAAP to GAAP measures are included in the news release furnished as Exhibit 99 to this 8-K filing.