Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

5 of 6
BACK NEXT
Accenture
Accenture
Debt as a % of capital: 0%
Return on capital: 86.5%

While cash flow is a key indicator of a company's strength, what a company does with its cash is equally important, and Accenture is a good example of effective use of cash.

Accenture provides business support services like management consulting, technology services and outsourcing. As such. Accenture is not a "capital intensive business," says Anurag Rana, an analyst with KeyBanc Capital Markets.

Rana thinks the company has made good use of its cash by investing in the company's most important asset: consultants."It's a knowledge based business," and Accenture's strategy has been to "invest money in people," he said.

That strategy appears to be working, based on the Accenture's 86% return on equity, which is a measure of how much profit a company generates with the money it has at its disposal. By way of comparison, HP's return on equity is only 21% It's no wonder that HP wants to diversify beyond the more capital-intensive hardware business and into services.

NEXT: Genentech

Last updated June 20 2008: 1:08 PM ET
More Galleries
Homes in these ZIP codes are selling like crazy Strong job growth, growing interest from Millennials and affordable home prices are attracting home buyers to these cities. More
Working class whites & the government: It's complicated These Clearfield, Pennsylvania, residents are mad at D.C., but want more help. More
Dear Trump and Clinton: Here's what swing voters want These voices are based on interviews with American voters from the key swing states of Florida and Ohio. It's part of a special report titled "Your money, your vote," that will air on CNN on October 15. More

Special Offer