Financial statement analysis and common stock valuation

Income Statement

The income statement (statement of earnings) reports on the performance of Intuit Inc., the result of its operating activities.

Common-Size Income Statement
Quarterly Data

Income statement components (revenues and expenses) shown as percentage of total sales.

Analysis of Profitability Ratios

Measures the income of Intuit Inc. relative to its revenues and invested capital.

• Profitability Ratios (Summary)
• Gross Profit Margin
• Operating Profit Margin
• Net Profit Margin
• Return on Equity (ROE)
• Return on Assets (ROA)

Common-Size Balance Sheet: Assets

Assets components shown as percentage of total assets.

Analysis of Long-term (Investment) Activity Ratios
Quarterly Data

Measures how efficiently Intuit Inc. generates revenues from its investments in fixed or total assets.

• Long-term Activity Ratios (Summary)
• Net Fixed Asset Turnover
• Total Asset Turnover
• Equity Turnover

Common-Size Income Statement

Income statement components (revenues and expenses) shown as percentage of total sales.

Capital Asset Pricing Model (CAPM)

CAPM is a theory concentrated with deriving the expected rates of return on risky assets based on the assets’ systematic risk levels. Systematic risk is the variability of returns that is due to macroeconomic factors that affect all risky assets. It cannot be eliminated by diversification.

• Rates of Return
• Variance and Covariance
• Systematic Risk (β) Estimation
• Expected Rate of Return

Analysis of Short-term (Operating) Activity Ratios

Evaluates revenues and output generated by the Intuit Inc. assets. Operating performance ratios describe the relationship between the Intuit Inc. level of operations and the assets needed to sustain operating activities.

• Short-term Activity Ratios (Summary)
• Receivables Turnover
• Payables Turnover
• Working Capital Turnover
• Average Receivable Collection Period
• Average Payables Payment Period

Balance Sheet: Assets

The assets reports major classes and amounts of resources owned or controlled by Intuit Inc..

Analysis of Solvency Ratios
Quarterly Data

Examines Intuit Inc. capital structure in terms of the mix of its financing sources and the ability of the firm to satisfy its longer-term debt and investment obligations.

• Solvency Ratios (Summary)
• Debt to Equity
• Debt to Equity (including Operating Lease Liability)
• Debt to Capital
• Debt to Capital (including Operating Lease Liability)
• Debt to Assets
• Debt to Assets (including Operating Lease Liability)
• Financial Leverage
• Interest Coverage

Analysis of Liquidity Ratios

Measures the adequacy of Intuit Inc. cash resources to meet its near-term cash obligations.

• Liquidity Ratios (Summary)
• Current Ratio
• Quick Ratio
• Cash Ratio

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

An approach to decomposing Intuit Inc. return on equity, return on assets, and net profit margin ratio as the product of other financial ratios.

• Two-Component Disaggregation of ROE
• Three-Component Disaggregation of ROE
• Five-Component Disaggregation of ROE
• Two-Component Disaggregation of ROA
• Four-Component Disaggregation of ROA
• Disaggregation of Net Profit Margin