Intuit Inc. (NASDAQ:INTU)

The financial data reflects significant changes and trends in intangible assets over the analyzed periods.

Goodwill

There is a marked increase from 1,654 million US dollars in 2020 to 13,736 million in 2022, followed by a stabilization around 13,800 million through 2025. This suggests substantial acquisitions or reassessments around 2021-2022, with a plateau thereafter.

Customer and User Relationships

This asset category increased sharply from 256 million in 2020 to approximately 6,200 million by 2022 and then remained relatively stable up to 2025. This pattern indicates significant investment or valuation increases in customer-related intangibles during 2021-2022, sustaining their value in subsequent years.

Purchased Technology

Values fluctuated moderately, rising from 421 million in 2020 to a peak of 1,765 million projected in 2025. The steady increase suggests ongoing investment in technology assets.

Trade Names and Logos

Starting from a modest 25 million in 2020, there was a sharp rise to 680 million by 2022, maintaining this level through 2025. This indicates a one-time significant revaluation or addition to brand-related assets followed by stability.

Covenants Not to Compete or Sue

Consistently held at 42 million from 2020 through 2023, this asset category is absent in the final two periods, suggesting either amortization completion or reclassification.

Acquired Intangible Assets, Cost

There is a steep increase from 744 million in 2020 to around 8,500 million by 2022, remaining relatively constant through 2025. This aligns with trends seen in customer relationships and purchased technology, reflecting substantial acquisitions or capitalizations during these years.

Accumulated Amortization

This account showed a continuous increase in absolute terms, from -716 million in 2020 to -3,341 million by 2025, suggesting ongoing amortization expense reducing the net intangible assets over time.

Acquired Intangible Assets, Net

Net acquired intangible assets increased sharply from 28 million in 2020 to a peak of 7,061 million in 2022, followed by a steady decline to 5,302 million by 2025, consistent with the accumulation of amortization effects.

Goodwill and Acquired Intangible Assets Combined

The combined total rose dramatically from 1,682 million in 2020 to a peak of 20,797 million in 2022, and then gradually declined to 19,282 million by 2025. This reflects the combined impact of significant asset additions during 2021-2022 and the subsequent amortization and potential impairment or disposals in later years.

Overall, the data indicates a period of aggressive acquisition or capitalization of intangible assets primarily between 2020 and 2022, followed by a stabilization phase where amortization and potential disposals lead to a gradual net decline in intangible asset values reported.

Total Assets

Reported total assets displayed a pronounced upward trajectory over the period analyzed, rising from $10,931 million in 2020 to $36,958 million in 2025. The most significant increase occurred between 2021 and 2022, nearly doubling the asset base. Adjusted total assets, reflecting goodwill adjustments, also showed a consistent increasing trend, growing from $9,277 million in 2020 to $22,978 million in 2025. However, the growth rate in adjusted assets was comparatively more gradual, particularly noticeable from 2022 onwards.

Stockholders’ Equity

Reported stockholders' equity increased substantially, starting at $5,106 million in 2020 and reaching $19,710 million by 2025. This steady rise suggests an enhancement in shareholders' claims over the period. Contrastingly, adjusted stockholders’ equity, which accounts for goodwill deductions, showed considerable volatility. Beginning at $3,452 million in 2020, it increased to $4,256 million in 2021 but then sharply declined to $2,705 million in 2022. Following this dip, it reversed direction, steadily growing to $5,730 million by 2025, indicating potential fluctuations in intangible asset valuations or impairment considerations.

Comparison and Insights

The divergence between reported and adjusted figures highlights the material impact of goodwill and intangible assets on the balance sheet. While reported totals consistently rose, adjustments reveal that a portion of these increases might be attributed to non-physical assets whose valuations can fluctuate. The sharp decrease in adjusted equity in 2022 suggests a revaluation or impairment event affecting goodwill. Despite this, the overall pattern reflects growth in the company’s asset base and net equity, underpinned by both tangible and intangible asset expansions. The widening gap between reported and adjusted figures over time also suggests increasing reliance on acquired intangible assets.

The analysis covers several key financial ratios over a six-year period, highlighting trends in asset utilization, leverage, and profitability.

Total Asset Turnover

The reported total asset turnover ratio shows a declining trend from 0.7 in 2020 to around 0.51 by 2024 and 2025, indicating a decrease in efficiency in using assets to generate sales. Conversely, the adjusted total asset turnover, which factors in goodwill adjustments, remains consistently higher and more stable, fluctuating between 0.83 and 1.03 during the same period. This suggests that when goodwill is accounted for, asset utilization appears more effective, with a peak in 2023 at 1.03 followed by a slight decline.

Financial Leverage

Reported financial leverage ratios decreased from 2.14 in 2020 to about 1.57 in 2021, indicating reduced reliance on debt, but then gradually increased to 1.88 by 2025. The adjusted financial leverage, which adjusts for goodwill, shows a different pattern with significantly higher values, peaking sharply at 5.17 in 2022 before settling around 4.0 in subsequent years. This indicates that after adjusting for goodwill, the company’s true leverage is considerably higher, reflecting greater financial risk or a different capital structure dynamic.

Return on Equity (ROE)

Reported ROE has declined substantially from 35.76% in 2020 to a low of 12.57% in 2022, but it begins to recover thereafter, reaching 19.63% by 2025. In contrast, the adjusted ROE is markedly higher, reflecting the impact of goodwill adjustments, and exhibits a volatile but generally increasing trend with a notable peak of 76.38% in 2022, followed by stabilization around the mid-60% range. This highlights significantly enhanced profitability when adjustments are made, although the volatility suggests variable performance factors affecting equity returns.

Return on Assets (ROA)

Reported ROA follows a downward trajectory from 16.7% in 2020 to 7.45% in 2022 before gradually increasing to 10.47% in 2025, indicating initial declines in asset profitability followed by modest improvements. The adjusted ROA is consistently higher than the reported figures, peaking at 20.82% in 2021 and then stabilizing between 14.76% and 17.03% through the later years. This again suggests that goodwill adjustments lead to a more favorable view of asset profitability, although the decline from the peak signals changing operational efficiency or asset base composition.

The analysis of the financial data reveals several notable trends in the reported and goodwill adjusted figures for assets and asset turnover ratios over the observed periods.

Total Assets (Reported versus Adjusted)

Reported total assets have shown a consistent upward trend, increasing from US$10,931 million in July 2020 to US$36,958 million in July 2025. This represents more than a threefold increase over the six-year span.

Adjusted total assets, which presumably exclude goodwill or other intangible assets, also follow an upward trajectory but with less pronounced growth, rising from US$9,277 million in 2020 to US$22,978 million in 2025. This indicates growth of approximately 2.5 times over the same period.

The gap between reported and adjusted total assets widens progressively, suggesting an increasing proportion of goodwill or intangible assets incorporated into the reported figures.

Total Asset Turnover Ratios (Reported versus Adjusted)

The reported total asset turnover ratio exhibits a declining trend from 0.7 in 2020 to a low of 0.46 in 2022, followed by a partial recovery stabilizing around 0.51 in 2024 and 2025. This decline indicates that the company’s efficiency in generating revenue from its reported asset base decreased initially but then plateaued at a lower level.

In contrast, the adjusted total asset turnover ratio remains consistently higher than the reported ratio throughout the period, starting at 0.83 in 2020 and peaking at 1.03 in 2023. After this peak, it gradually decreases to 0.82 by 2025.

The higher and more stable adjusted asset turnover ratios suggest that when goodwill and intangible assets are excluded, the company's asset utilization efficiency is stronger and less volatile.

Insights and Implications

The diverging trends between reported and adjusted asset figures imply a growing accumulation of goodwill or other intangible asset components, which may be due to acquisitions or internal development strategies.

The declining reported asset turnover ratio alongside increasing reported assets points toward a dilution of asset efficiency based on the gross asset base.

Conversely, the adjusted asset turnover ratio’s peak and subsequent slight decline reflect a business operating efficiently with its tangible and non-goodwill asset base, though there is an indication of slight diminishing efficiency after 2023.

Overall, the data suggests a strategic expansion with increased intangible asset holdings, accompanied by efforts to maintain operational efficiency when these intangibles are excluded.

The financial data over the analyzed periods reveals distinct trends in both reported and goodwill adjusted metrics. Total assets, on a reported basis, show consistent growth from 10,931 million US dollars in 2020 to an estimated 36,958 million US dollars by 2025. Adjusted total assets, which exclude goodwill, also demonstrate a steady upward trajectory, increasing from 9,277 million to 22,978 million over the same period. This indicates an overall expansion in asset base, albeit with a significant portion attributable to goodwill, as suggested by the difference between reported and adjusted figures.

Stockholders' equity also trends upward in both reported and adjusted forms. Reported equity nearly quadruples from 5,106 million in 2020 to an anticipated 19,710 million in 2025, signifying substantial growth in net asset value. However, adjusted equity, which accounts for goodwill removal, shows a more nuanced pattern: it rises initially from 3,452 million in 2020 to 4,256 million in 2021 but then declines sharply to 2,705 million in 2022. Afterwards, it increases steadily to 5,730 million by 2025. This pattern could indicate impairments or adjustments related to goodwill during this period, affecting the net equity base when goodwill is excluded.

Financial leverage metrics reveal notable differences when comparing reported and adjusted figures. Reported financial leverage decreases from 2.14 in 2020 to a low of 1.57 in 2021, followed by a moderate increase to 1.88 by 2025, suggesting relatively stable leverage with some variability. In contrast, adjusted financial leverage, which excludes goodwill effects, starts higher at 2.69 in 2020, declines to 2.33 in 2021, then rises sharply to 5.17 in 2022 before gradually decreasing to approximately 4.01 in the last two forecasted periods. This elevated and volatile adjusted leverage points to increased reliance on debt or other liabilities relative to tangible equity during certain years, especially around 2022.

In summary, the data indicates overall growth in assets and equity on a reported basis, with a steady increase in the company’s net worth. The adjusted figures, however, highlight the impact of goodwill on reported results, with periods of significant adjustment affecting the underlying equity and leverage positions. The comparatively higher and more variable adjusted financial leverage underscores potential risks or variability in the capital structure when intangible assets are excluded, warranting attention for financial stability evaluation.

Total Assets

Consistent growth in both reported and adjusted figures, with reported assets increasing more substantially, highlighting a significant goodwill component.

Stockholders’ Equity

Reported equity demonstrates strong growth, while adjusted equity experiences volatility, notably a decline in 2022, reflecting goodwill adjustments or impairments.

Financial Leverage

Reported leverage remains relatively stable with a slight upward trend. Adjusted leverage is higher and more volatile, peaking in 2022, indicating increased leverage excluding goodwill.

Stockholders’ equity trends

Reported stockholders’ equity exhibited a consistent upward trajectory from 2020 to 2025. Starting at 5,106 million USD in 2020, it nearly doubled by 2021 to 9,869 million USD, and continued to increase each subsequent year, reaching 19,710 million USD by 2025. Adjusted stockholders’ equity showed a less consistent pattern. It rose from 3,452 million USD in 2020 to 4,256 million USD in 2021 but then decreased sharply to 2,705 million USD in 2022. Afterward, it recovered gradually, increasing through 2023 to 2025, ending at 5,730 million USD.

Reported Return on Equity (ROE) patterns

Reported ROE declined significantly between 2020 and 2022, falling from 35.76% in 2020 to 12.57% in 2022. Following this low point, it experienced a moderate recovery through 2023, 2024, and 2025, reaching 19.63% in the latter year. This suggests a period of reduced efficiency in generating returns on reported equity, with partial improvement in recent years.

Adjusted Return on Equity (ROE) analysis

Adjusted ROE was notably high throughout the period compared to reported ROE but showed marked volatility. Starting at 52.9% in 2020, it declined to 48.45% in 2021, then increased sharply to a peak of 76.38% in 2022. Subsequently, it decreased to 68.33% in 2023 and further to around mid-60% levels for 2024 and 2025, showing some stabilization but at a reduced level relative to the 2022 peak.

Comparative insights between reported and adjusted figures

Reported equity steadily increased in contrast to adjusted equity, which fluctuated notably, particularly with a dip in 2022. The decline in reported ROE through 2022 aligned with a sharp decrease in reported equity growth rate, whereas adjusted ROE’s peak in 2022 coincided with the trough in adjusted equity. This inverse relationship suggests that adjustments, possibly related to goodwill, significantly affect the equity base and profitability metrics, leading to amplified ROE values after adjustment. The volatility in adjusted figures points to sensitivity around intangible asset considerations impacting the underlying equity and return metrics.

Total Assets

The reported total assets exhibited a significant upward trend over the period analyzed, rising from 10,931 million US dollars in 2020 to 36,958 million US dollars by 2025. This represents more than a threefold increase within five years. The adjusted total assets, which exclude goodwill, also increased but at a comparatively slower pace, growing from 9,277 million US dollars to 22,978 million US dollars over the same period. This difference suggests an increasing proportion of goodwill and intangible assets in the total asset base over time.

Return on Assets (ROA)

The reported ROA declined from 16.7% in 2020 to a low of 7.45% in 2022, before gradually recovering to reach 10.47% in 2025. In contrast, the adjusted ROA, which accounts for asset adjustments primarily by excluding goodwill, remained consistently higher than reported ROA throughout the period. It started at 19.68% in 2020 and, despite some fluctuations, maintained relatively strong performance with a low of 14.76% in 2022, before improving to approximately 16.84% by 2025. This suggests that when excluding goodwill, the asset utilization efficiency remained relatively stable and more robust compared to reported figures.

Key Insights

The divergence between reported and adjusted total assets highlights the impact of goodwill on the company’s balance sheet. The adjusted metrics provide a clearer view of operational asset efficiency, as reflected in the adjusted ROA figures consistently outperforming the reported ROA. The decline in reported ROA through 2022, followed by a recovery, may be indicative of short-term challenges or investments affecting profitability, while the steadier adjusted ROA implies underlying operational resilience. The overall trends suggest cautious optimism in asset management and profitability improvements, particularly when analyzed excluding goodwill.