Deloitte Is the First Big 4 Firm to Clear $50 Billion In Global Revenue
Big 4 revenue bragging season is officially underway with Deloitte being the first out of the gate. But before we get to Deloitte’s haul for fiscal year 2021, let’s recap last year’s global revenue results:
Deloitte: +3.9% to $47.6 billionPwC: +1.4% to $43 billionEY: +2.3% to $37.2 billionKPMG: -1.8% to $29.2 billion
Each one of the Final Four Horsemen of the Accounting Apocalypse said they started out really strong in FY 2020, but then the Rona happened and that strong revenue growth hit the proverbial brick wall due to the global markets tanking amid COVID-19 anxiety.
So will 2021 be a bounce-back year for the Big 4? It was in D-town, as Deloitte became the first of the foursome to reach the $50 billion mark:
Deloitte today reported aggregate global revenue of US$50.2 billion for the fiscal year ending 31 May 2021 (FY2021), a 5.5% increase in US dollars (USD).
“Events of this past year have had an unprecedented impact on the world and our organization. From the COVID-19 pandemic to more frequent, extreme climate events, and social upheavals, we are grateful that we’ve been able to continue to help clients and support our people as we all navigate through this challenging environment,” says Punit Renjen, Deloitte Global CEO. “While the past year was difficult and defined by uncertainty, it has shown what can be achieved at speed and scale when businesses, governments, and society work together to tackle tough global challenges. This cooperative approach is a model that we must continue to build on.”
We’ll set the odds of PwC overtaking Deloitte for the No. 1 spot at +50,000—the same odds Betsided has given the Houston Texans for winning Super Bowl LVI. Any takers?
In terms of regional growth, the Americas pulled in nearly half of Deloitte’s total revenue with $25.2 billion; however, that was $100 million less than the revenue generated by the Americas region in 2020. EMEA (Europe, Middle East, Africa) brought in $16.7 billion in revenue, an 11.3% increase over last year, and Asia Pacific grew by $8.5 billion, up 14% year over year.
In 2020, four of the five main service lines at Deloitte either increased revenue or stayed flat, with audit and assurance being the biggest loser as revenue decreased nearly 3%. In 2021, all five saw positive revenue gains over last year, with consulting once again leading the way:
Consulting: $20.8 billion (up 5%)Audit and assurance: $10.5 billion (up 6.1%)Tax and legal: $8.9 billion (up 2.3%)Risk advisory: $5.9 billion (up 5.6%)Financial advisory: $4.3 billion (up 12.9%)
The increase in financial advisory revenue in 2021 is due to “professionals being engaged on more than 1,200 distressed and COVID-related mandates,” Deloitte said in its 2021 Global Impact Report.
Deloitte’s market leading mergers and acquisitions (M&A) practices advised on thousands of transactions during the merger wave of 2020. Turnaround and Restructuring teams have assisted governments around the world to administer pandemicrelated funding for businesses and individuals, and have participated in government-led COVID-19 task forces to advise on distressed sectors. And Deloitte infrastructure practices have supported projects related to pandemic response and economic stimulus, including testing and tracing programs, and promoting projects around smart cities and urban renewal.
Deloitte hired 83,730 people in 2021, bringing the total Green Dot count across the globe to 345,374.
Deloitte’s 3.9% Increase In FY 2020 Global Revenue Is the Smallest Growth In About 5 Years
The post Deloitte Is the First Big 4 Firm to Clear $50 Billion In Global Revenue appeared first on Going Concern.
Did you miss our previous article…