Economic Value Added (EVA)
EVA is registered trademark of Stern Stewart.
Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.
Economic Profit
Intuit Inc., economic profit calculation
US$ in millions
Based on: 10-K (reporting date: 2026-07-31), 10-K (reporting date: 2025-07-31), 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).
1 NOPAT. See details »
2 Cost of capital. See details »
3 Invested capital. See details »
4 2026 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 6,389 – 16.51% × 26,250 = 2,056
The financial trajectory between July 2021 and July 2026 is characterized by a significant cycle of capital expansion, a period of value destruction, and a subsequent recovery leading to value creation. The transition from a marginal economic profit to substantial negative figures and eventually back to a positive state indicates a strategic investment phase that required several years to yield returns exceeding the cost of capital.
- Net Operating Profit After Taxes (NOPAT)
- NOPAT exhibited a general upward trend over the observed period, despite a temporary contraction in July 2023. After stabilizing at approximately 2.0 to 2.7 billion dollars between 2021 and 2024, a sharp acceleration occurred in 2025 and 2026, with the final year showing a peak of 6.389 billion dollars. This suggests a significant increase in operational efficiency or market scaling in the latter part of the period.
- Invested Capital and Capital Cost
- Invested capital saw a dramatic increase between July 2021 and July 2022, rising from 12.248 billion dollars to 24.726 billion dollars. Following this spike, the capital base remained relatively stable, fluctuating between 23.7 and 26.2 billion dollars. Throughout this timeframe, the cost of capital remained consistent, hovering between 16.51% and 17.53%, indicating a stable risk profile and financing environment.
- Economic Profit Evolution
- Economic profit shifted from a near-zero positive value of 14 million dollars in 2021 to deep negatives, peaking at a deficit of 2.046 billion dollars in 2023. This downturn coincided with the doubling of invested capital, as the NOPAT did not grow fast enough to cover the increased capital charge. However, from 2024 onward, a recovery trend emerged as NOPAT growth accelerated while invested capital remained plateaued. This culminated in a pivot to positive economic profit of 2.056 billion dollars by July 2026.
- Synthesis of Value Creation
- The data indicates a period of strategic investment where the company accepted negative economic profit in the short term to build a larger capital base. The subsequent surge in NOPAT in 2025 and 2026 suggests that the investments made in 2022 began to generate returns significantly higher than the 16-17% cost of capital, effectively transitioning the organization from value destruction back to sustainable value creation.
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Net Operating Profit after Taxes (NOPAT)
Intuit Inc., NOPAT calculation
US$ in millions
Based on: 10-K (reporting date: 2026-07-31), 10-K (reporting date: 2025-07-31), 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).
1 Elimination of deferred tax expense. See details »
2 Addition of increase (decrease) in allowance for doubtful accounts.
3 Addition of increase (decrease) in deferred revenue.
4 Addition of increase (decrease) in accrued restructuring.
5 Addition of increase (decrease) in equity equivalents to net income.
6 2026 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 752 × 4.40% = 33
7 2026 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 289 × 21.00% = 61
8 Addition of after taxes interest expense to net income.
The financial trajectory from 2021 through 2026 indicates a general expansion in both bottom-line profitability and core operating performance, although the growth patterns between net income and net operating profit after taxes (NOPAT) exhibit distinct variances.
- Net Income Trends
- A consistent upward trajectory is observed in net income, rising from US$ 2,062 million in 2021 to US$ 4,566 million by 2026. This represents a steady growth pattern with an acceleration in value gains starting in 2024, suggesting a sustained increase in overall profitability.
- NOPAT Performance and Volatility
- Net operating profit after taxes demonstrates a more non-linear growth pattern. After an initial increase between 2021 and 2022, a contraction is noted in 2023, where NOPAT declined to US$ 2,022 million. Following this dip, a robust recovery is observed, culminating in a sharp spike to US$ 6,389 million by 2026, indicating a significant projected increase in operating efficiency.
- Comparative Divergence
- The relationship between net income and NOPAT shifts across the analyzed period. While NOPAT was higher than net income in 2021 and 2022, the trend reversed between 2023 and 2025, during which net income exceeded operating profits. In 2026, a substantial divergence occurs, with NOPAT expanding to significantly outweigh net income, suggesting that projected operating gains are outpacing the growth of the final net earnings.
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Cash Operating Taxes
Intuit Inc., cash operating taxes calculation
US$ in millions
Based on: 10-K (reporting date: 2026-07-31), 10-K (reporting date: 2025-07-31), 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).
The financial data reveals a divergent relationship between the provision for income taxes and the actual cash operating taxes paid over the six-year period ending July 31, 2026. While the tax provision shows a steady long-term increase, cash tax payments exhibit significant volatility and substantial timing differences.
- Provision for Income Taxes Trend
- The provision for income taxes remained relatively stable between 2021 and 2024, fluctuating between 476 million and 605 million US dollars. A sharp upward trajectory is observed in the final two years, with the provision rising to 965 million in 2025 and reaching a peak of 1,451 million in 2026, indicating a significant increase in recognized tax expenses.
- Cash Operating Taxes Volatility
- Cash tax payments demonstrate a non-linear pattern. After a decline in 2022 to 398 million US dollars, payments spiked to 1,320 million in 2023, more than double the provision for that year. This elevated level continued through 2025, peaking at 1,538 million, before experiencing a precipitous drop to 240 million in 2026.
- Comparison and Accrual Divergence
- A notable disconnect exists between the accrual-based provision and the cash outflow. In the period from 2023 to 2025, cash operating taxes substantially exceeded the provision for income taxes, suggesting the settlement of prior-year liabilities or the impact of non-deductible items. Conversely, in 2026, the provision reached its highest point while cash taxes fell to their lowest level in the observed period, implying a significant increase in deferred tax liabilities or a shift in tax payment timing.
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Invested Capital
Intuit Inc., invested capital calculation (financing approach)
US$ in millions
Based on: 10-K (reporting date: 2026-07-31), 10-K (reporting date: 2025-07-31), 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).
1 Addition of capitalized operating leases.
2 Elimination of deferred taxes from assets and liabilities. See details »
3 Addition of allowance for doubtful accounts receivable.
4 Addition of deferred revenue.
5 Addition of accrued restructuring.
6 Addition of equity equivalents to stockholders’ equity.
7 Removal of accumulated other comprehensive income.
8 Subtraction of capital in progress.
9 Subtraction of available-for-sale debt securities.
The trajectory of invested capital demonstrates a significant expansion phase beginning in 2022, followed by a period of relative stabilization and a subsequent renewed increase by 2026.
- Invested Capital Trends
- Invested capital experienced a substantial surge between 2021 and 2022, increasing from 12,248 million to 24,726 million. Following this expansion, the capital base entered a period of fluctuation, remaining within a range of 23,712 million to 24,948 million from 2023 through 2025, before reaching a period peak of 26,250 million in 2026.
- Debt and Lease Obligations
- Total reported debt and leases showed a sharp increase in 2022, rising from 2,480 million to 7,540 million. This figure remained relatively stable between 2023 and 2025, fluctuating slightly around 6,600 million, before escalating to 8,421 million in 2026, marking the highest debt level in the analyzed period.
- Stockholders' Equity Evolution
- Equity maintained a consistent upward trend from 2021 to 2025, growing steadily from 9,869 million to a peak of 19,710 million. A moderate contraction occurred in 2026, with equity decreasing to 18,992 million, indicating a shift in the composition of the capital base during the final year.
- Capital Structure Dynamics
- The primary driver of the 2022 expansion in invested capital was a simultaneous and significant increase in both debt and equity. From 2023 to 2025, the stability of invested capital was characterized by steady equity growth offsetting minor fluctuations in debt. By 2026, the growth in total invested capital was driven exclusively by increased debt obligations, coinciding with a decline in stockholders' equity.
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Cost of Capital
Intuit Inc., cost of capital calculations
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 83,896) | 83,896) | ÷ | 92,368) | = | 0.91 | 0.91 | × | 17.79% | = | 16.16% | ||
| Debt3 | 7,720) | 7,720) | ÷ | 92,368) | = | 0.08 | 0.08 | × | 4.85% × (1 – 21.00%) | = | 0.32% | ||
| Operating lease liability4 | 752) | 752) | ÷ | 92,368) | = | 0.01 | 0.01 | × | 4.40% × (1 – 21.00%) | = | 0.03% | ||
| Total: | 92,368) | 1.00 | 16.51% | ||||||||||
Based on: 10-K (reporting date: 2026-07-31).
1 US$ in millions
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 186,431) | 186,431) | ÷ | 193,111) | = | 0.97 | 0.97 | × | 17.79% | = | 17.18% | ||
| Debt3 | 6,014) | 6,014) | ÷ | 193,111) | = | 0.03 | 0.03 | × | 4.80% × (1 – 21.00%) | = | 0.12% | ||
| Operating lease liability4 | 666) | 666) | ÷ | 193,111) | = | 0.00 | 0.00 | × | 3.80% × (1 – 21.00%) | = | 0.01% | ||
| Total: | 193,111) | 1.00 | 17.31% | ||||||||||
Based on: 10-K (reporting date: 2025-07-31).
1 US$ in millions
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 174,650) | 174,650) | ÷ | 181,231) | = | 0.96 | 0.96 | × | 17.79% | = | 17.15% | ||
| Debt3 | 6,052) | 6,052) | ÷ | 181,231) | = | 0.03 | 0.03 | × | 4.56% × (1 – 21.00%) | = | 0.12% | ||
| Operating lease liability4 | 529) | 529) | ÷ | 181,231) | = | 0.00 | 0.00 | × | 3.30% × (1 – 21.00%) | = | 0.01% | ||
| Total: | 181,231) | 1.00 | 17.27% | ||||||||||
Based on: 10-K (reporting date: 2024-07-31).
1 US$ in millions
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 154,031) | 154,031) | ÷ | 160,539) | = | 0.96 | 0.96 | × | 17.79% | = | 17.07% | ||
| Debt3 | 5,939) | 5,939) | ÷ | 160,539) | = | 0.04 | 0.04 | × | 2.66% × (1 – 21.00%) | = | 0.08% | ||
| Operating lease liability4 | 569) | 569) | ÷ | 160,539) | = | 0.00 | 0.00 | × | 3.00% × (1 – 21.00%) | = | 0.01% | ||
| Total: | 160,539) | 1.00 | 17.16% | ||||||||||
Based on: 10-K (reporting date: 2023-07-31).
1 US$ in millions
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 118,402) | 118,402) | ÷ | 125,796) | = | 0.94 | 0.94 | × | 17.79% | = | 16.75% | ||
| Debt3 | 6,768) | 6,768) | ÷ | 125,796) | = | 0.05 | 0.05 | × | 1.58% × (1 – 21.00%) | = | 0.07% | ||
| Operating lease liability4 | 626) | 626) | ÷ | 125,796) | = | 0.00 | 0.00 | × | 2.90% × (1 – 21.00%) | = | 0.01% | ||
| Total: | 125,796) | 1.00 | 16.83% | ||||||||||
Based on: 10-K (reporting date: 2022-07-31).
1 US$ in millions
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 155,004) | 155,004) | ÷ | 157,484) | = | 0.98 | 0.98 | × | 17.79% | = | 17.51% | ||
| Debt3 | 2,034) | 2,034) | ÷ | 157,484) | = | 0.01 | 0.01 | × | 1.35% × (1 – 21.00%) | = | 0.01% | ||
| Operating lease liability4 | 446) | 446) | ÷ | 157,484) | = | 0.00 | 0.00 | × | 2.30% × (1 – 21.00%) | = | 0.01% | ||
| Total: | 157,484) | 1.00 | 17.53% | ||||||||||
Based on: 10-K (reporting date: 2021-07-31).
1 US$ in millions
2 Equity. See details »
3 Debt. See details »
4 Operating lease liability. See details »
Economic Spread Ratio
Intuit Inc., economic spread ratio calculation, comparison to benchmarks
| Jul 31, 2026 | Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Economic profit1 | 2,056) | (712) | (1,642) | (2,046) | (1,860) | 14) | |
| Invested capital2 | 26,250) | 24,521) | 24,948) | 23,712) | 24,726) | 12,248) | |
| Performance Ratio | |||||||
| Economic spread ratio3 | 7.83% | -2.91% | -6.58% | -8.63% | -7.52% | 0.11% | |
| Benchmarks | |||||||
| Economic Spread Ratio, Competitors4 | |||||||
| Accenture PLC | — | 0.70% | 0.34% | 1.12% | 3.99% | 5.81% | |
| Adobe Inc. | — | 13.20% | 0.92% | 1.09% | 6.58% | 8.97% | |
| AppLovin Corp. | — | 28.93% | 1.21% | -20.00% | -26.37% | -29.58% | |
| Cadence Design Systems Inc. | — | -1.28% | -2.87% | 7.18% | 6.59% | 6.80% | |
| Datadog Inc. | — | -8.74% | -9.43% | -5.95% | -11.70% | -3.88% | |
| International Business Machines Corp. | — | -0.82% | -7.67% | -3.61% | -11.36% | -6.21% | |
| Microsoft Corp. | 8.88% | 5.63% | 7.51% | 10.56% | 18.54% | 27.58% | |
| Oracle Corp. | -3.77% | -7.90% | -7.76% | -8.56% | -7.56% | 0.65% | |
| Palantir Technologies Inc. | — | 41.88% | -12.04% | -8.76% | -32.50% | -39.96% | |
| Palo Alto Networks Inc. | -12.79% | -3.82% | 5.37% | 11.50% | 3.53% | -5.17% | |
| Salesforce Inc. | -6.95% | -12.37% | -14.18% | -17.63% | -14.50% | -12.36% | |
| ServiceNow Inc. | — | 2.66% | 5.94% | 5.23% | 0.73% | 1.94% | |
| Synopsys Inc. | — | -12.39% | -8.14% | -7.44% | -0.84% | -6.86% | |
| Workday Inc. | -9.43% | -11.52% | -12.93% | -19.15% | -13.98% | -19.23% | |
Based on: 10-K (reporting date: 2026-07-31), 10-K (reporting date: 2025-07-31), 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).
1 Economic profit. See details »
2 Invested capital. See details »
3 2026 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × 2,056 ÷ 26,250 = 7.83%
4 Click competitor name to see calculations.
The financial performance between 2021 and 2026 is characterized by a significant period of economic value destruction followed by a robust recovery. A critical shift occurred between 2021 and 2022, where the organization moved from a near-break-even economic position to a substantial deficit, remaining in negative territory until a strong turnaround in 2026.
- Economic Spread Ratio Trends
- The economic spread ratio exhibits a V-shaped trajectory. After starting at a marginal 0.11% in 2021, the ratio declined sharply to -7.52% in 2022 and reached its lowest point of -8.63% in 2023. This indicates that for three consecutive years, the return on invested capital was insufficient to cover the cost of that capital. However, a consistent upward trend began in 2024, with the ratio improving to -6.58% in 2024 and -2.91% in 2025, eventually rebounding to a positive 7.83% by 2026.
- Invested Capital Dynamics
- A substantial increase in invested capital is observed between 2021 and 2022, where the amount rose from 12,248 million US$ to 24,726 million US$, effectively doubling the capital base. Following this expansion, the invested capital remained relatively stable, fluctuating between approximately 23,700 million US$ and 26,250 million US$ through 2026. The initial surge in capital coincides with the precipitous drop in the economic spread ratio, suggesting that the additional capital did not immediately generate returns exceeding its cost.
- Economic Profit Correlation
- Economic profit closely mirrors the movements of the spread ratio. The transition from a nominal profit of 14 million US$ in 2021 to losses peaking at 2,046 million US$ in 2023 underscores a period of value erosion. The subsequent reduction of losses to 1,642 million US$ in 2024 and 712 million US$ in 2025 demonstrates a progressive recovery in operational efficiency or asset utilization. This culmination results in a significant positive economic profit of 2,056 million US$ by 2026, signaling that the organization has successfully leveraged its expanded capital base to create value.
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Economic Profit Margin
Intuit Inc., economic profit margin calculation, comparison to benchmarks
| Jul 31, 2026 | Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Economic profit1 | 2,056) | (712) | (1,642) | (2,046) | (1,860) | 14) | |
| Net revenue | 21,448) | 18,831) | 16,285) | 14,368) | 12,726) | 9,633) | |
| Add: Increase (decrease) in deferred revenue | 49) | 147) | (50) | 112) | 122) | 27) | |
| Adjusted net revenue | 21,497) | 18,978) | 16,235) | 14,480) | 12,848) | 9,660) | |
| Performance Ratio | |||||||
| Economic profit margin2 | 9.56% | -3.75% | -10.11% | -14.13% | -14.48% | 0.14% | |
| Benchmarks | |||||||
| Economic Profit Margin, Competitors3 | |||||||
| Accenture PLC | — | 0.45% | 0.19% | 0.58% | 1.92% | 2.98% | |
| Adobe Inc. | — | 11.94% | 1.04% | 1.37% | 7.67% | 11.17% | |
| AppLovin Corp. | — | 29.73% | 1.17% | -27.38% | -49.38% | -59.23% | |
| Cadence Design Systems Inc. | — | -1.92% | -4.40% | 7.15% | 6.57% | 6.91% | |
| Datadog Inc. | — | -5.18% | -8.56% | -3.72% | -8.10% | -3.08% | |
| International Business Machines Corp. | — | -1.46% | -13.55% | -6.43% | -19.67% | -11.82% | |
| Microsoft Corp. | 14.91% | 8.39% | 10.50% | 12.02% | 17.77% | 22.89% | |
| Oracle Corp. | -9.25% | -15.82% | -14.76% | -16.57% | -13.87% | 1.29% | |
| Palantir Technologies Inc. | — | 21.69% | -10.44% | -4.70% | -54.53% | -65.82% | |
| Palo Alto Networks Inc. | -35.54% | -4.52% | 5.70% | 11.42% | 4.11% | -6.95% | |
| Salesforce Inc. | -14.89% | -26.71% | -32.78% | -44.58% | -40.27% | -28.34% | |
| ServiceNow Inc. | — | 2.94% | 4.88% | 4.21% | 0.58% | 1.68% | |
| Synopsys Inc. | — | -72.30% | -13.64% | -10.49% | -1.18% | -10.92% | |
| Workday Inc. | -11.34% | -12.24% | -14.39% | -23.49% | -18.95% | -25.09% | |
Based on: 10-K (reporting date: 2026-07-31), 10-K (reporting date: 2025-07-31), 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).
1 Economic profit. See details »
2 2026 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted net revenue
= 100 × 2,056 ÷ 21,497 = 9.56%
3 Click competitor name to see calculations.
The period from July 31, 2021, to July 31, 2026, is characterized by a significant divergence between revenue growth and economic value creation. While adjusted net revenue expanded consistently throughout the timeframe, the company navigated a multi-year period of economic profit contraction before returning to a state of value creation by the end of the analyzed period.
- Adjusted Net Revenue Growth
- A consistent upward trajectory is observed in adjusted net revenue, which grew from 9,660 million USD in 2021 to 21,497 million USD in 2026. This steady increase indicates sustained top-line expansion and scaling of operations over the six-year period.
- Economic Profit Fluctuations
- Economic profit experienced high volatility, starting at a marginal positive of 14 million USD in 2021 before declining sharply to a peak deficit of 2,046 million USD in 2023. A recovery phase commenced in 2024, with losses narrowing to 712 million USD by 2025 and eventually shifting to a positive economic profit of 2,056 million USD in 2026.
- Economic Profit Margin Trends
- The economic profit margin reflects a deep trough followed by a steady rebound. After falling from 0.14% in 2021 to -14.48% in 2022, the margin showed incremental improvements each year from 2023 onwards. The margin rose from -14.13% in 2023 to -10.11% in 2024, -3.75% in 2025, and finally reached a positive 9.56% in 2026, indicating that the entity successfully restored its ability to generate returns in excess of its cost of capital.
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