Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Intuit Inc. (NASDAQ:INTU)

Analysis of Property, Plant and Equipment

Advanced level

Property, Plant and Equipment Disclosure

Intuit Inc., balance sheet: property, plant and equipment

US$ in millions

Microsoft Excel LibreOffice Calc
Jul 31, 2020 Jul 31, 2019 Jul 31, 2018 Jul 31, 2017 Jul 31, 2016 Jul 31, 2015
Equipment 226  421  479  579  533  447 
Computer software 870  860  812  749  619  552 
Furniture and fixtures 93  90  88  82  73  71 
Leasehold improvements 298  278  325  310  296  286 
Land 79  79  79  81  60  7 
Buildings 372  368  363  547  403  192 
Capital in progress 90  65  48  71  256  188 
Property and equipment, cost 2,028  2,161  2,194  2,419  2,240  1,743 
Accumulated depreciation and amortization (1,294) (1,381) (1,382) (1,389) (1,209) (1,061)
Property and equipment, net 734  780  812  1,030  1,031  682 

Based on: 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), 10-K (filing date: 2015-09-01).

Item Description The company
Property and equipment, cost Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Intuit Inc.’s property and equipment, cost decreased from 2018 to 2019 and from 2019 to 2020.
Property and equipment, net Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Intuit Inc.’s property and equipment, net decreased from 2018 to 2019 and from 2019 to 2020.

Asset Age Ratios (Summary)

Intuit Inc., asset age ratios

Microsoft Excel LibreOffice Calc
Jul 31, 2020 Jul 31, 2019 Jul 31, 2018 Jul 31, 2017 Jul 31, 2016 Jul 31, 2015
Average age ratio 66.39% 66.33% 65.34% 59.41% 55.46% 61.12%
Estimated total useful life (years) 10 10 9 11 11 11
Estimated age, time elapsed since purchase (years) 7 7 6 6 6 7
Estimated remaining life (years) 3 4 3 4 5 4

Based on: 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), 10-K (filing date: 2015-09-01).

Asset age ratio Description The company
Average age ratio As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company’s fixed asset base is old or new. Newer assets are likely to be more efficient. Intuit Inc.’s average age ratio of depreciable property, plant and equipment deteriorated from 2018 to 2019 and from 2019 to 2020.
Estimated total useful life Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors. Intuit Inc.’s estimated total useful life of depreciable property, plant and equipment increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.
Estimated time elapsed since purchase The approximate age in years of a company’s fixed assets. Useful for comparison purposes. Intuit Inc.’s estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.
Estimated remaining life Intuit Inc.’s estimated remaining life of depreciable property, plant and equipment increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.

Average Age

Microsoft Excel LibreOffice Calc
Jul 31, 2020 Jul 31, 2019 Jul 31, 2018 Jul 31, 2017 Jul 31, 2016 Jul 31, 2015
Selected Financial Data (US$ in millions)
Accumulated depreciation and amortization 1,294  1,381  1,382  1,389  1,209  1,061 
Property and equipment, cost 2,028  2,161  2,194  2,419  2,240  1,743 
Land 79  79  79  81  60  7 
Asset Age Ratio
Average age1 66.39% 66.33% 65.34% 59.41% 55.46% 61.12%

Based on: 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), 10-K (filing date: 2015-09-01).

2020 Calculations

1 Average age = 100 × Accumulated depreciation and amortization ÷ (Property and equipment, cost – Land)
= 100 × 1,294 ÷ (2,028 – 79) = 66.39%

Asset age ratio Description The company
Average age As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company’s fixed asset base is old or new. Newer assets are likely to be more efficient. Intuit Inc.’s average age ratio of depreciable property, plant and equipment deteriorated from 2018 to 2019 and from 2019 to 2020.

Estimated Total Useful Life

Microsoft Excel LibreOffice Calc
Jul 31, 2020 Jul 31, 2019 Jul 31, 2018 Jul 31, 2017 Jul 31, 2016 Jul 31, 2015
Selected Financial Data (US$ in millions)
Property and equipment, cost 2,028  2,161  2,194  2,419  2,240  1,743 
Land 79  79  79  81  60  7 
Depreciation expense 189  199  228  214  195  157 
Asset Age Ratio (Years)
Estimated total useful life1 10 10 9 11 11 11

Based on: 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), 10-K (filing date: 2015-09-01).

2020 Calculations

1 Estimated total useful life = (Property and equipment, cost – Land) ÷ Depreciation expense
= (2,028 – 79) ÷ 189 = 10

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors. Intuit Inc.’s estimated total useful life of depreciable property, plant and equipment increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel LibreOffice Calc
Jul 31, 2020 Jul 31, 2019 Jul 31, 2018 Jul 31, 2017 Jul 31, 2016 Jul 31, 2015
Selected Financial Data (US$ in millions)
Accumulated depreciation and amortization 1,294  1,381  1,382  1,389  1,209  1,061 
Depreciation expense 189  199  228  214  195  157 
Asset Age Ratio (Years)
Time elapsed since purchase1 7 7 6 6 6 7

Based on: 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), 10-K (filing date: 2015-09-01).

2020 Calculations

1 Time elapsed since purchase = Accumulated depreciation and amortization ÷ Depreciation expense
= 1,294 ÷ 189 = 7

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company’s fixed assets. Useful for comparison purposes. Intuit Inc.’s estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.

Estimated Remaining Life

Microsoft Excel LibreOffice Calc
Jul 31, 2020 Jul 31, 2019 Jul 31, 2018 Jul 31, 2017 Jul 31, 2016 Jul 31, 2015
Selected Financial Data (US$ in millions)
Property and equipment, net 734  780  812  1,030  1,031  682 
Land 79  79  79  81  60  7 
Depreciation expense 189  199  228  214  195  157 
Asset Age Ratio (Years)
Estimated remaining life1 3 4 3 4 5 4

Based on: 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), 10-K (filing date: 2015-09-01).

2020 Calculations

1 Estimated remaining life = (Property and equipment, net – Land) ÷ Depreciation expense
= (734 – 79) ÷ 189 = 3

Asset age ratio Description The company
Estimated remaining life Intuit Inc.’s estimated remaining life of depreciable property, plant and equipment increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.