Stock Analysis on Net
Stock Analysis on Net

Intuit Inc. (NASDAQ:INTU)

Analysis of Goodwill and Intangible Assets

Microsoft Excel LibreOffice Calc

Goodwill and Intangible Asset Disclosure

Intuit Inc., balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel LibreOffice Calc
Jul 31, 2021 Jul 31, 2020 Jul 31, 2019 Jul 31, 2018 Jul 31, 2017 Jul 31, 2016
Goodwill 5,613  1,654  1,655  1,611  1,295  1,282 
Customer lists/User relationships 3,038  256  256  257  240  241 
Purchased technology 686  421  422  403  367  369 
Trade names and logos 400  25  25  25  23  23 
Covenants not to compete or sue 42  42  39  39  32  32 
Acquired intangible assets, cost 4,166  744  742  724  662  665 
Accumulated amortization (914) (716) (688) (663) (640) (621)
Acquired intangible assets, net 3,252  28  54  61  22  44 
Goodwill and acquired intangible assets 8,865  1,682  1,709  1,672  1,317  1,326 

Based on: 10-K (filing date: 2021-09-08), 10-K (filing date: 2020-08-31), 10-K (filing date: 2019-08-30), 10-K (filing date: 2018-08-31), 10-K (filing date: 2017-09-01), 10-K (filing date: 2016-09-01).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Intuit Inc.’s goodwill decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Acquired intangible assets, net Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Intuit Inc.’s acquired intangible assets, net decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Goodwill and acquired intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Intuit Inc.’s goodwill and acquired intangible assets decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Adjustments to Financial Statements: Removal of Goodwill

Intuit Inc., adjustments to financial statements

US$ in millions

Microsoft Excel LibreOffice Calc
Jul 31, 2021 Jul 31, 2020 Jul 31, 2019 Jul 31, 2018 Jul 31, 2017 Jul 31, 2016
Adjustment to Total Assets
Total assets (as reported) 15,516  10,931  6,283  5,178  4,068  4,250 
Less: Goodwill 5,613  1,654  1,655  1,611  1,295  1,282 
Total assets (adjusted) 9,903  9,277  4,628  3,567  2,773  2,968 
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 9,869  5,106  3,749  2,354  1,354  1,161 
Less: Goodwill 5,613  1,654  1,655  1,611  1,295  1,282 
Stockholders’ equity (adjusted) 4,256  3,452  2,094  743  59  (121)

Based on: 10-K (filing date: 2021-09-08), 10-K (filing date: 2020-08-31), 10-K (filing date: 2019-08-30), 10-K (filing date: 2018-08-31), 10-K (filing date: 2017-09-01), 10-K (filing date: 2016-09-01).


Intuit Inc., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Goodwill (Summary)

Intuit Inc., adjusted financial ratios

Microsoft Excel LibreOffice Calc
Jul 31, 2021 Jul 31, 2020 Jul 31, 2019 Jul 31, 2018 Jul 31, 2017 Jul 31, 2016
Total Asset Turnover
Reported total asset turnover 0.62 0.70 1.08 1.15 1.27 1.10
Adjusted total asset turnover 0.97 0.83 1.47 1.67 1.87 1.58
Financial Leverage
Reported financial leverage 1.57 2.14 1.68 2.20 3.00 3.66
Adjusted financial leverage 2.33 2.69 2.21 4.80 47.00
Return on Equity (ROE)
Reported ROE 20.89% 35.76% 41.53% 51.44% 71.71% 84.32%
Adjusted ROE 48.45% 52.90% 74.36% 162.99% 1,645.76%
Return on Assets (ROA)
Reported ROA 13.29% 16.70% 24.78% 23.39% 23.87% 23.04%
Adjusted ROA 20.82% 19.68% 33.64% 33.95% 35.02% 32.99%

Based on: 10-K (filing date: 2021-09-08), 10-K (filing date: 2020-08-31), 10-K (filing date: 2019-08-30), 10-K (filing date: 2018-08-31), 10-K (filing date: 2017-09-01), 10-K (filing date: 2016-09-01).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Intuit Inc.’s adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Intuit Inc.’s adjusted financial leverage ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Intuit Inc.’s adjusted ROE deteriorated from 2019 to 2020 and from 2020 to 2021.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Intuit Inc.’s adjusted ROA deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Intuit Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Jul 31, 2021 Jul 31, 2020 Jul 31, 2019 Jul 31, 2018 Jul 31, 2017 Jul 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net revenue 9,633  7,679  6,784  5,964  5,177  4,694 
Total assets 15,516  10,931  6,283  5,178  4,068  4,250 
Activity Ratio
Total asset turnover1 0.62 0.70 1.08 1.15 1.27 1.10
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net revenue 9,633  7,679  6,784  5,964  5,177  4,694 
Adjusted total assets 9,903  9,277  4,628  3,567  2,773  2,968 
Activity Ratio
Adjusted total asset turnover2 0.97 0.83 1.47 1.67 1.87 1.58

Based on: 10-K (filing date: 2021-09-08), 10-K (filing date: 2020-08-31), 10-K (filing date: 2019-08-30), 10-K (filing date: 2018-08-31), 10-K (filing date: 2017-09-01), 10-K (filing date: 2016-09-01).

2021 Calculations

1 Total asset turnover = Net revenue ÷ Total assets
= 9,633 ÷ 15,516 = 0.62

2 Adjusted total asset turnover = Net revenue ÷ Adjusted total assets
= 9,633 ÷ 9,903 = 0.97

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Intuit Inc.’s adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Jul 31, 2021 Jul 31, 2020 Jul 31, 2019 Jul 31, 2018 Jul 31, 2017 Jul 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Total assets 15,516  10,931  6,283  5,178  4,068  4,250 
Stockholders’ equity 9,869  5,106  3,749  2,354  1,354  1,161 
Solvency Ratio
Financial leverage1 1.57 2.14 1.68 2.20 3.00 3.66
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 9,903  9,277  4,628  3,567  2,773  2,968 
Adjusted stockholders’ equity 4,256  3,452  2,094  743  59  (121)
Solvency Ratio
Adjusted financial leverage2 2.33 2.69 2.21 4.80 47.00

Based on: 10-K (filing date: 2021-09-08), 10-K (filing date: 2020-08-31), 10-K (filing date: 2019-08-30), 10-K (filing date: 2018-08-31), 10-K (filing date: 2017-09-01), 10-K (filing date: 2016-09-01).

2021 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 15,516 ÷ 9,869 = 1.57

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 9,903 ÷ 4,256 = 2.33

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Intuit Inc.’s adjusted financial leverage ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Jul 31, 2021 Jul 31, 2020 Jul 31, 2019 Jul 31, 2018 Jul 31, 2017 Jul 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income 2,062  1,826  1,557  1,211  971  979 
Stockholders’ equity 9,869  5,106  3,749  2,354  1,354  1,161 
Profitability Ratio
ROE1 20.89% 35.76% 41.53% 51.44% 71.71% 84.32%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income 2,062  1,826  1,557  1,211  971  979 
Adjusted stockholders’ equity 4,256  3,452  2,094  743  59  (121)
Profitability Ratio
Adjusted ROE2 48.45% 52.90% 74.36% 162.99% 1,645.76%

Based on: 10-K (filing date: 2021-09-08), 10-K (filing date: 2020-08-31), 10-K (filing date: 2019-08-30), 10-K (filing date: 2018-08-31), 10-K (filing date: 2017-09-01), 10-K (filing date: 2016-09-01).

2021 Calculations

1 ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 2,062 ÷ 9,869 = 20.89%

2 Adjusted ROE = 100 × Net income ÷ Adjusted stockholders’ equity
= 100 × 2,062 ÷ 4,256 = 48.45%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Intuit Inc.’s adjusted ROE deteriorated from 2019 to 2020 and from 2020 to 2021.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Jul 31, 2021 Jul 31, 2020 Jul 31, 2019 Jul 31, 2018 Jul 31, 2017 Jul 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income 2,062  1,826  1,557  1,211  971  979 
Total assets 15,516  10,931  6,283  5,178  4,068  4,250 
Profitability Ratio
ROA1 13.29% 16.70% 24.78% 23.39% 23.87% 23.04%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income 2,062  1,826  1,557  1,211  971  979 
Adjusted total assets 9,903  9,277  4,628  3,567  2,773  2,968 
Profitability Ratio
Adjusted ROA2 20.82% 19.68% 33.64% 33.95% 35.02% 32.99%

Based on: 10-K (filing date: 2021-09-08), 10-K (filing date: 2020-08-31), 10-K (filing date: 2019-08-30), 10-K (filing date: 2018-08-31), 10-K (filing date: 2017-09-01), 10-K (filing date: 2016-09-01).

2021 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 2,062 ÷ 15,516 = 13.29%

2 Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 2,062 ÷ 9,903 = 20.82%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Intuit Inc.’s adjusted ROA deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.