Analysis of Property, Plant and Equipment
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- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Selected Financial Data since 2005
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
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Property, Plant and Equipment Disclosure
Intuit Inc., balance sheet: property, plant and equipment
US$ in millions
Based on: 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).
- Trends in Asset Categories
- The value of computer software peaked around the fiscal year ending July 31, 2022, reaching 911 million USD, then declined steadily to 810 million USD by July 31, 2024. Buildings showed minimal increases until a significant jump in the last reported year, reaching 636 million USD after a prior steady range around 368-382 million USD. Leasehold improvements recorded consistent growth throughout the period, culminating in 495 million USD in the latest year.
- Equipment values decreased substantially over the period, dropping from 421 million USD in 2019 to 177 million USD in 2024, indicating possible asset disposals or reduced capital expenditure in this category. Furniture and fixtures increased moderately at first and spiked sharply in the last year, ending at 141 million USD. Land values remained stable for most years before a rise to 96 million USD in 2024.
- Capital in progress increased steadily and significantly up to 2023, peaking at 360 million USD, followed by a sharp drop to 17 million USD in 2024, suggesting completion or reclassification of projects.
- Total Property and Equipment Cost
- The total cost of property and equipment fluctuated slightly, decreasing from 2,161 million USD in 2019 to a low of 2,028 million USD in 2020, then increasing to a peak of 2,441 million USD in 2023, followed by a slight decline to 2,372 million USD in 2024. This pattern reflects a combination of ongoing investments and disposals or write-downs.
- Accumulated Depreciation and Amortization
- Accumulated depreciation and amortization figures show a generally increasing trend, moving from -1,381 million USD in 2019 to a peak of -1,472 million USD in 2023. However, there is a notable reduction in 2024 to -1,363 million USD. This suggests possible asset retirements or changes in depreciation methods impacting accumulated amounts.
- Net Property and Equipment
- Net property and equipment values declined initially from 780 million USD in 2019 to 734 million USD in 2020 but then exhibited continuous growth through 2024, reaching 1,009 million USD in the latest year. This upward trend indicates improvement in the net value of assets, driven by additions exceeding depreciation and disposals in recent periods.
- Overall Insights
- The data reveals a strategic focus on enhancing leasehold improvements and buildings, with marked increases in these areas, especially in the latest year. Concurrently, there appears to be a reduction in equipment and capital in progress, potentially reflecting a shift in capital allocation or completion of significant projects. The fluctuation in accumulated depreciation combined with growth in net asset values suggests careful asset management, balancing additions and disposals while maintaining or increasing overall net property value.
Asset Age Ratios (Summary)
Intuit Inc., asset age ratios
Based on: 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).
- Average Age Ratio
- The average age ratio demonstrates a consistent decreasing trend over the analyzed period, dropping from 66.33% in 2019 to 59.89% in 2024. This suggests that the proportion of the asset's life that has elapsed relative to its total useful life has been gradually diminishing, indicating that assets are relatively newer on average or that older assets are being replaced or retired more frequently as time progresses.
- Estimated Total Useful Life
- The estimated total useful life of property, plant, and equipment shows an initial constant period of 10 years for 2019 and 2020, followed by an increase to 12 years for 2021 and 2022, and a further increase to 15 years in 2023 and a slight decrease to 14 years in 2024. This upward adjustment indicates a reassessment of asset longevity, reflecting either improvements in asset durability or changes in asset composition that lead to longer useful life estimates.
- Estimated Age, Time Elapsed Since Purchase
- The estimated age of assets remains relatively stable around 7 to 9 years over the years. It increased from 7 years in 2019 and 2020 to 8 years in 2021 and 2022, and further increased to 9 years in 2023 and 2024. This slow increase indicates that assets on the balance sheet are aging steadily, which is consistent with typical asset utilization patterns and replacement cycles.
- Estimated Remaining Life
- The estimated remaining life of assets experienced fluctuations across the period. It decreased from 4 years in 2019 and 2020 to 3 years in 2020, then recovered to 4 years during 2021 and 2022. Notably, it increased significantly to 6 years in both 2023 and 2024. This pattern, combined with the increases in estimated total useful life, suggests that either newer assets with longer future service potential were added, or the company revised its estimates to reflect longer remaining useful lives for existing assets.
Overall, the data reveals a strategic adjustment in asset lifecycle assumptions, with lengthening useful life estimates and increasing estimated remaining life, coupled with a decrease in the average age ratio. These changes imply a shift towards recognizing longer asset utility and potentially more recent capital expenditure or asset improvements, contributing to a younger asset base relative to its total useful life over the analyzed period.
Average Age
Based on: 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).
2024 Calculations
1 Average age = 100 × Accumulated depreciation and amortization ÷ (Property and equipment, cost – Land)
= 100 × ÷ ( – ) =
- Property and Equipment Cost
- The cost of property and equipment exhibited a fluctuating pattern from 2019 to 2024. Initially, it decreased from 2,161 million US dollars in 2019 to 2,028 million in 2020. Subsequently, it increased steadily, peaking at 2,441 million in 2023 before a slight decline to 2,372 million in 2024. This suggests periods of both divestment or slower capital expenditure and reinvestment or asset acquisition activities.
- Accumulated Depreciation and Amortization
- The accumulated depreciation and amortization values generally followed an inconsistent trend. Starting at 1,381 million US dollars in 2019, it decreased to 1,294 million in 2020, then gradually increased through 2022 and 2023, reaching 1,472 million. However, it declined again to 1,363 million in 2024. These fluctuations could be influenced by changes in asset base, depreciation policies, or asset disposals during the periods.
- Land
- The recorded value of land remained constant at 79 million US dollars for five years, from 2019 through 2023, followed by a noticeable increase to 96 million in 2024. This indicates a recent acquisition or revaluation of land assets, representing a strategic investment or reclassification in the latest year.
- Average Age Ratio
- The average age ratio, signifying the relative age of the property and equipment assets, showed a consistent downward trend over the six-year period. It decreased from 66.33% in 2019 to 59.89% in 2024, reflecting a gradual renewal or replacement of older assets with newer ones, possibly indicating an ongoing modernization or capital refresh effort within the asset base.
Estimated Total Useful Life
Based on: 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).
2024 Calculations
1 Estimated total useful life = (Property and equipment, cost – Land) ÷ Depreciation expense
= ( – ) ÷ =
The analysis of property, plant, and equipment data over the six-year period reveals several notable trends and changes.
- Property and Equipment, Cost
- The total cost of property and equipment fluctuated modestly during the observed period. Starting at $2,161 million in 2019, it dipped to $2,028 million in 2020, then rebounded to $2,120 million in 2021. A more consistent upward trend ensued with values rising to $2,326 million in 2022 and peaking at $2,441 million in 2023, followed by a slight decrease to $2,372 million in 2024. This suggests a general pattern of incremental investment with occasional contractions.
- Land
- The value of land remained stable at $79 million from 2019 through 2023, indicating no significant acquisition or disposal activity in this asset class during this span. However, a notable increase occurred in 2024, with the land value rising to $96 million. This change may imply recent land acquisitions or revaluation.
- Depreciation Expense
- Depreciation expense displayed a declining trend over time. It started at $199 million in 2019 and dropped to $189 million in 2020. The downward trajectory continued with $166 million in 2021, followed by a rise to $187 million in 2022, then decreased again to $160 million in 2023, and slightly dipped to $159 million in 2024. The fluctuations in depreciation expense indicate changes in depreciation policies or asset composition.
- Estimated Total Useful Life
- The estimated useful life of property and equipment showed a clear increasing trend. It remained constant at 10 years from 2019 to 2020, then extended to 12 years for 2021 and 2022, followed by a further increase to 15 years in 2023, before slightly decreasing to 14 years in 2024. This trend reflects adjustments in the expected asset longevity, potentially due to changes in assets' nature, maintenance strategies, or accounting estimates.
Estimated Age, Time Elapsed since Purchase
Based on: 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).
2024 Calculations
1 Time elapsed since purchase = Accumulated depreciation and amortization ÷ Depreciation expense
= ÷ =
- Accumulated depreciation and amortization
- The accumulated depreciation and amortization show a fluctuating trend over the six-year period. It initially decreased from 1,381 million USD in 2019 to 1,294 million USD in 2020, followed by a slight increase to 1,340 million USD in 2021. The figure rose further to 1,438 million USD in 2022 and 1,472 million USD in 2023, before declining to 1,363 million USD in 2024. This pattern suggests some variations in asset write-downs or potential revaluations affecting accumulated depreciation.
- Depreciation expense
- The depreciation expense has shown a general decreasing trend across the evaluated periods. Beginning at 199 million USD in 2019, it declined to 189 million USD in 2020 and further decreased to 166 million USD in 2021. There was a modest increase to 187 million USD in 2022, but the expense dropped again in the subsequent years to 160 million USD in 2023 and then slightly to 159 million USD in 2024. This downward movement may indicate reduced additions to depreciable assets or changes in the depreciation method or asset composition.
- Time elapsed since purchase
- The time elapsed since purchase increased steadily from 7 years in 2019 and 2020 to 8 years in 2021 and 2022, and further to 9 years in 2023 and 2024, reflecting aging assets over the period. This progression aligns with the observed reduction in depreciation expense, as older assets typically have lower depreciation charges.
Estimated Remaining Life
Based on: 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).
2024 Calculations
1 Estimated remaining life = (Property and equipment, net – Land) ÷ Depreciation expense
= ( – ) ÷ =
- Property and Equipment, Net
- Over the six-year period, the net value of property and equipment exhibited fluctuations with an overall upward trend. Starting at 780 million USD in 2019, the figure declined to 734 million USD in 2020 but subsequently rose to 1,009 million USD by 2024. This growth from 2020 onwards suggests ongoing investments or capital expenditures that increased the asset base.
- Land
- The value of land remained constant at 79 million USD from 2019 to 2023, indicating no purchases or disposals during this time. In 2024, however, it increased noticeably to 96 million USD, pointing to a significant acquisition or reassessment of land holdings in that year.
- Depreciation Expense
- Depreciation expense exhibited a general declining trend over the period, falling from 199 million USD in 2019 to 159 million USD in 2024. The expense peaked at 189 million USD in 2020, then decreased steadily, possibly reflecting changes in the asset base composition, accelerated depreciation schedules earlier on, or adjustments due to asset disposals or fully depreciated assets.
- Estimated Remaining Life
- The estimated remaining life of property and equipment fluctuated between 3 and 6 years. Initially at 4 years in 2019, it decreased to 3 years in 2020, then returned to 4 years for the next two years. In 2023 and 2024, the estimated remaining life extended to 6 years, which may indicate the acquisition of new assets with longer useful lives or revisions to asset life assumptions that extend the depreciation period.