Stock Analysis on Net

Intuit Inc. (NASDAQ:INTU)

$24.99

Return on Equity (ROE)
since 2005

Microsoft Excel

Calculation

Intuit Inc., ROE, long-term trends, calculation

Microsoft Excel

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), 10-K (reporting date: 2018-07-31), 10-K (reporting date: 2017-07-31), 10-K (reporting date: 2016-07-31), 10-K (reporting date: 2015-07-31), 10-K (reporting date: 2014-07-31), 10-K (reporting date: 2013-07-31), 10-K (reporting date: 2012-07-31), 10-K (reporting date: 2011-07-31), 10-K (reporting date: 2010-07-31), 10-K (reporting date: 2009-07-31), 10-K (reporting date: 2008-07-31), 10-K (reporting date: 2007-07-31), 10-K (reporting date: 2006-07-31), 10-K (reporting date: 2005-07-31).

1 US$ in millions


The financial data reveals several notable trends over the examined periods. Net income generally exhibits a growth trajectory, with occasional fluctuations. Beginning at $382 million in 2005, net income rises steadily year-over-year, reaching its highest value of $2,963 million in 2024. This consistent increase signals a strong and expanding profitability trend for the company.

Stockholders’ equity also demonstrates an overall upward movement, although with some variability. Starting at $1,695 million in 2005, it grows significantly to peak at $18,436 million in 2024. There are periods where equity dips or stagnates, such as between 2014 and 2016, but the long-term direction remains positive, indicating accrual of retained earnings and possible capital injections.

The return on equity (ROE), expressed as a percentage, shows a more complex pattern. Initially, ROE fluctuates moderately between approximately 17.5% and 29.5% in the earlier years, suggesting relatively stable profitability relative to equity. A striking escalation occurs around 2015 and 2016, with ROE reaching anomalously high levels of over 70%, then gradually declining to around 16% by 2024. This spike may be attributable to a sharp reduction in stockholders’ equity combined with maintained or increased net income, resulting in high efficiency ratios that normalize in subsequent years. The decline in ROE in the latter years suggests that equity has grown faster relative to net income or that profitability margins decreased, reflecting shifts in company strategy or market conditions.

In summary, the company showcases strong growth in absolute profitability and equity. However, the volatility in ROE, especially the peak in the mid-2010s followed by a steady decline, suggests changes in leverage, capital structure, or asset base utilization that warrant further analysis. The sustained increase in net income alongside the substantial rise in equity signals robustness and potential for continued growth, though efficiency metrics point to a moderation in return generation relative to equity invested.

Net Income
Consistently rising from $382 million (2005) to $2,963 million (2024), indicating strong earnings growth.
Stockholders’ Equity
Overall upward trend from $1,695 million to $18,436 million, with temporary dips reflecting equity fluctuations.
Return on Equity (ROE)
Variable performance with a notable spike above 70% around 2015-2016, followed by a decline stabilizing near 16% in 2024, pointing to changes in capital efficiency over time.

Comparison to Competitors

Intuit Inc., ROE, long-term trends, comparison to competitors

Microsoft Excel

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), 10-K (reporting date: 2018-07-31), 10-K (reporting date: 2017-07-31), 10-K (reporting date: 2016-07-31), 10-K (reporting date: 2015-07-31), 10-K (reporting date: 2014-07-31), 10-K (reporting date: 2013-07-31), 10-K (reporting date: 2012-07-31), 10-K (reporting date: 2011-07-31), 10-K (reporting date: 2010-07-31), 10-K (reporting date: 2009-07-31), 10-K (reporting date: 2008-07-31), 10-K (reporting date: 2007-07-31), 10-K (reporting date: 2006-07-31), 10-K (reporting date: 2005-07-31).


Comparison to Sector (Software & Services)


Comparison to Industry (Information Technology)