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: 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), 10-K (reporting date: 2020-07-31).
1 NOPAT. See details »
2 Cost of capital. See details »
3 Invested capital. See details »
4 2025 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 3,531 – 19.60% × 24,521 = -1,274
An analysis of the economic value added indicates a period of significant capital expansion that initially outpaced the growth in operating profits, resulting in a sustained period of negative economic profit. While operating performance has shown a strong upward trajectory, the combination of a high cost of capital and a substantially enlarged capital base has created a high threshold for achieving positive economic value.
- Net Operating Profit After Taxes (NOPAT)
- A consistent growth trend is observed in NOPAT, which rose from US$ 1,795 million in 2020 to US$ 3,531 million in 2025. Although a slight contraction occurred in 2023, the subsequent growth in 2024 and 2025 represents a significant acceleration in operational profitability.
- Cost of Capital
- The cost of capital remained stable throughout the analyzed period, fluctuating minimally between 19.06% and 19.87%. This indicates a constant and relatively high hurdle rate that the return on invested capital must exceed to generate economic value.
- Invested Capital
- A sharp increase in invested capital was recorded between 2021 and 2022, with the value rising from US$ 12,248 million to US$ 24,726 million. Following this expansion, the capital base stabilized, fluctuating within a narrow range between US$ 23,712 million and US$ 24,948 million through 2025.
- Economic Profit
- The company shifted from a positive economic profit of US$ 107 million in 2020 to negative territory, with losses deepening to a peak deficit of US$ 2,586 million in 2023. This decline is primarily attributed to the rapid increase in invested capital which occurred faster than the growth of NOPAT. However, a recovery trend is evident in the final two years, as the economic profit deficit narrowed to US$ 1,274 million by 2025, suggesting that operating profits are beginning to catch up with the cost of the deployed capital.
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Net Operating Profit after Taxes (NOPAT)
Intuit Inc., NOPAT calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2020-07-31).
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 2025 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 666 × 3.80% = 25
7 2025 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 272 × 21.00% = 57
8 Addition of after taxes interest expense to net income.
- Net income
- The net income shows an overall upward trend from 2020 to 2025. Starting at 1,826 million USD in 2020, it increases steadily each year, reaching 3,869 million USD in 2025. The yearly increments indicate consistent growth, with a notable acceleration from 2023 to 2025 where the net income rises by approximately 577 million USD between 2023 and 2024, and by 906 million USD between 2024 and 2025.
- Net operating profit after taxes (NOPAT)
- NOPAT also follows an increasing trajectory over the period, starting at 1,795 million USD in 2020 and rising to 3,531 million USD in 2025. However, the trend is less smooth compared to net income. After an increase from 2020 to 2022, there is a dip in 2023 to 2,022 million USD. Following this dip, the figures recover and grow substantially in 2024 and 2025. The increase from 2023 to 2025 is significant, indicating enhanced operational efficiency or profitability after taxes during the later years.
- Comparison and insights
- Both net income and NOPAT demonstrate growth over the six-year period, with net income growing slightly more consistently. The dip in NOPAT in 2023 suggests possible operational challenges or non-recurring expenses that affected operating profits during that year. The recovery and strong growth in subsequent years for both metrics imply successful strategic adjustments or improved market conditions. Overall, the data suggests increasing profitability and operational effectiveness over time, with particularly strong momentum in the last two years.
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Cash Operating Taxes
Intuit Inc., cash operating taxes calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2020-07-31).
- Provision for income taxes
-
The provision for income taxes showed a fluctuating trend over the analyzed periods. Starting at 372 million US dollars in July 2020, it increased to 494 million in July 2021. This was followed by a slight decrease to 476 million in July 2022. Subsequently, the provision rose again to 605 million in July 2023, then decreased slightly to 587 million in July 2024. A significant increase was observed in July 2025, reaching 965 million. Overall, the provision demonstrated an upward trajectory with occasional declines, suggesting variability in taxable income or tax rates but a general rise in tax expenses over time.
- Cash operating taxes
-
The cash operating taxes exhibited considerable volatility throughout the period. Beginning at 477 million US dollars in July 2020, it increased moderately to 545 million in July 2021. However, a sharp decline occurred in July 2022, with the value dropping to 398 million. This was followed by a dramatic increase in July 2023 to 1,320 million and a further slight decrease to 1,276 million in July 2024. The upward movement continued into July 2025, reaching 1,538 million. This pattern indicates significant fluctuations in actual cash tax payments, possibly driven by changes in profitability, tax planning strategies, or timing differences in tax payments.
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Invested Capital
Intuit Inc., invested capital calculation (financing approach)
US$ in millions
Based on: 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), 10-K (reporting date: 2020-07-31).
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 financial data presents a multi-year view of key financial metrics, namely total reported debt and leases, stockholders’ equity, and invested capital, spanning from fiscal years ending July 31, 2020 through July 31, 2025.
- Total Reported Debt & Leases
- This liability measure showed a decline from 3,636 million USD in 2020 to 2,480 million USD in 2021, indicating a reduction in debt obligations or lease liabilities during that period. However, it then rose sharply to 7,540 million USD by 2022, suggesting a significant incurrence of additional liabilities. After 2022, the value decreased slightly to 6,689 million USD in 2023 and then remained relatively stable, hovering around 6,500 to 6,600 million USD through the forecasted years 2024 and 2025. This pattern reveals an initial debt reduction, followed by a rapid increase and subsequent stabilization at a higher level than the starting point.
- Stockholders’ Equity
- Stockholders’ equity exhibited a consistent and significant upward trajectory throughout the period. Starting from 5,106 million USD in 2020, equity nearly doubled to 9,869 million USD by 2021, then continued to increase sharply to 16,441 million USD in 2022. The growth persisted through 2023 and into the projections for 2024 and 2025, reaching a forecasted 19,710 million USD. This steady increase reflects improvements in net assets attributable to shareholders, potentially driven by retained earnings growth, capital infusion, or favorable market valuations.
- Invested Capital
- Invested capital rose from 8,690 million USD in 2020 to 12,248 million USD in 2021, aligning with the growth trend seen in equity. A pronounced jump occurred in 2022 to 24,726 million USD, more than doubling the prior year, which parallels the spike in total reported debt and leases, indicating significant new capital investment potentially funded by increased liabilities. There was a marginal decline to 23,712 million USD in 2023, followed by a moderate increase to 24,948 million USD in 2024, before a slight reduction to 24,521 million USD in the final forecast year. Overall, invested capital has more than doubled from the start to the end of the period, reflecting substantial asset base growth likely supporting operational expansion or strategic acquisitions.
In summary, the data points to a period marked by substantial balance sheet expansion, with stockholders’ equity and invested capital growing robustly. The pattern of debt indicates strategic leveraging after an initial reduction, stabilizing at higher levels consistent with increased invested capital. Together, these trends suggest an aggressive growth phase involving capital acquisition and financing moves to support organizational objectives.
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Cost of Capital
Intuit Inc., cost of capital calculations
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 186,431) | 186,431) | ÷ | 193,111) | = | 0.97 | 0.97 | × | 20.16% | = | 19.47% | ||
| 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 | 19.60% | ||||||||||
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 | × | 20.16% | = | 19.43% | ||
| 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 | 19.56% | ||||||||||
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 | × | 20.16% | = | 19.35% | ||
| 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 | 19.43% | ||||||||||
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 | × | 20.16% | = | 18.98% | ||
| 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 | 19.06% | ||||||||||
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 | × | 20.16% | = | 19.85% | ||
| 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 | 19.87% | ||||||||||
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 »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 90,426) | 90,426) | ÷ | 94,121) | = | 0.96 | 0.96 | × | 20.16% | = | 19.37% | ||
| Debt3 | 3,428) | 3,428) | ÷ | 94,121) | = | 0.04 | 0.04 | × | 1.41% × (1 – 21.00%) | = | 0.04% | ||
| Operating lease liability4 | 267) | 267) | ÷ | 94,121) | = | 0.00 | 0.00 | × | 3.10% × (1 – 21.00%) | = | 0.01% | ||
| Total: | 94,121) | 1.00 | 19.42% | ||||||||||
Based on: 10-K (reporting date: 2020-07-31).
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, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Economic profit1 | (1,274) | (2,212) | (2,586) | (2,412) | (272) | 107) | |
| Invested capital2 | 24,521) | 24,948) | 23,712) | 24,726) | 12,248) | 8,690) | |
| Performance Ratio | |||||||
| Economic spread ratio3 | -5.20% | -8.87% | -10.90% | -9.75% | -2.22% | 1.23% | |
| Benchmarks | |||||||
| Economic Spread Ratio, Competitors4 | |||||||
| Accenture PLC | 0.65% | 0.29% | 1.07% | 3.94% | 5.76% | 6.36% | |
| Adobe Inc. | 13.13% | 0.84% | 1.01% | 6.51% | 8.89% | 1.17% | |
| AppLovin Corp. | 28.12% | 0.41% | -20.71% | -26.87% | -30.28% | — | |
| Cadence Design Systems Inc. | -1.20% | -2.79% | 7.26% | 6.67% | 6.88% | — | |
| CrowdStrike Holdings Inc. | -13.27% | -8.34% | -4.60% | -7.90% | -10.16% | — | |
| Datadog Inc. | -8.82% | -9.51% | -6.04% | -11.79% | -3.97% | — | |
| International Business Machines Corp. | -0.62% | -7.46% | -3.42% | -11.18% | -6.05% | — | |
| Microsoft Corp. | 7.74% | 9.62% | 12.66% | 20.63% | 29.66% | 27.74% | |
| Oracle Corp. | -7.16% | -7.05% | -7.88% | -6.94% | 1.26% | — | |
| Palantir Technologies Inc. | 41.56% | -12.35% | -9.08% | -32.82% | -40.27% | — | |
| Palo Alto Networks Inc. | -3.99% | 5.20% | 11.33% | 3.37% | -5.32% | -6.16% | |
| Salesforce Inc. | -12.47% | -14.28% | -17.72% | -14.60% | -12.45% | — | |
| ServiceNow Inc. | 2.76% | 6.04% | 5.33% | 0.82% | 2.04% | — | |
| Synopsys Inc. | -12.36% | -8.10% | -7.40% | -0.81% | -6.83% | -6.63% | |
| Workday Inc. | -11.63% | -13.03% | -19.26% | -14.09% | -19.34% | — | |
Based on: 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), 10-K (reporting date: 2020-07-31).
1 Economic profit. See details »
2 Invested capital. See details »
3 2025 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -1,274 ÷ 24,521 = -5.20%
4 Click competitor name to see calculations.
The financial trajectory between July 31, 2020, and July 31, 2025, indicates a significant transition from economic value creation to a period of substantial value destruction, followed by a gradual recovery phase. The overall performance is characterized by a sharp increase in capital deployment that initially outpaced the generation of economic returns.
- Economic Profit Trends
- A reversal in economic profit occurred after July 31, 2020, shifting from a positive US$ 107 million to increasingly negative figures. The deficit peaked in 2023 at US$ 2,586 million. However, a recovery trend is evident in the final two years of the period, with the economic loss narrowing to US$ 1,274 million by July 31, 2025.
- Invested Capital Dynamics
- Invested capital experienced an aggressive expansion, rising from US$ 8,690 million in 2020 to US$ 24,726 million in 2022. This nearly threefold increase in capital coincides with the onset of negative economic profit. Following this expansion, the capital base stabilized, fluctuating slightly between US$ 23,712 million and US$ 24,948 million through 2025.
- Economic Spread Ratio Analysis
- The economic spread ratio mirrors the volatility of economic profit, declining from a positive 1.23% in 2020 to a minimum of -10.90% in 2023. This negative spread indicates that the return on invested capital fell significantly below the cost of capital. A steady improvement is observed from 2024 onward, with the ratio ascending to -5.20% by July 31, 2025, reflecting a reduction in the gap between returns and capital costs.
The correlation between the surge in invested capital and the deterioration of the economic spread ratio suggests that the rapid capital expansion initially hindered the company's ability to generate value above its cost of capital. The subsequent narrowing of the negative spread suggests an increasing efficiency in utilizing the expanded capital base.
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Economic Profit Margin
Intuit Inc., economic profit margin calculation, comparison to benchmarks
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Economic profit1 | (1,274) | (2,212) | (2,586) | (2,412) | (272) | 107) | |
| Net revenue | 18,831) | 16,285) | 14,368) | 12,726) | 9,633) | 7,679) | |
| Add: Increase (decrease) in deferred revenue | 147) | (50) | 112) | 122) | 27) | 42) | |
| Adjusted net revenue | 18,978) | 16,235) | 14,480) | 12,848) | 9,660) | 7,721) | |
| Performance Ratio | |||||||
| Economic profit margin2 | -6.71% | -13.62% | -17.86% | -18.77% | -2.82% | 1.39% | |
| Benchmarks | |||||||
| Economic Profit Margin, Competitors3 | |||||||
| Accenture PLC | 0.42% | 0.16% | 0.55% | 1.90% | 2.95% | 3.24% | |
| Adobe Inc. | 11.88% | 0.96% | 1.27% | 7.58% | 11.08% | 1.68% | |
| AppLovin Corp. | 28.90% | 0.39% | -28.35% | -50.32% | -60.62% | — | |
| Cadence Design Systems Inc. | -1.80% | -4.28% | 7.23% | 6.65% | 6.99% | — | |
| CrowdStrike Holdings Inc. | -21.84% | -13.08% | -6.18% | -12.37% | -21.10% | — | |
| Datadog Inc. | -5.24% | -8.64% | -3.78% | -8.16% | -3.15% | — | |
| International Business Machines Corp. | -1.11% | -13.19% | -6.10% | -19.37% | -11.51% | — | |
| Microsoft Corp. | 11.54% | 13.45% | 14.42% | 19.77% | 24.62% | 20.59% | |
| Oracle Corp. | -14.34% | -13.41% | -15.24% | -12.73% | 2.49% | — | |
| Palantir Technologies Inc. | 21.53% | -10.72% | -4.87% | -55.05% | -66.34% | — | |
| Palo Alto Networks Inc. | -4.73% | 5.52% | 11.25% | 3.93% | -7.16% | -10.00% | |
| Salesforce Inc. | -26.92% | -33.00% | -44.81% | -40.53% | -28.55% | — | |
| ServiceNow Inc. | 3.05% | 4.97% | 4.29% | 0.66% | 1.77% | — | |
| Synopsys Inc. | -72.13% | -13.58% | -10.44% | -1.13% | -10.87% | -11.39% | |
| Workday Inc. | -12.36% | -14.51% | -23.62% | -19.09% | -25.23% | — | |
Based on: 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), 10-K (reporting date: 2020-07-31).
1 Economic profit. See details »
2 2025 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted net revenue
= 100 × -1,274 ÷ 18,978 = -6.71%
3 Click competitor name to see calculations.
The financial trajectory from July 31, 2020, to July 31, 2025, is characterized by a significant divergence between consistent top-line revenue growth and the volatility of economic value creation. While the scale of operations expanded steadily, the ability to generate economic profit underwent a severe contraction before entering a recovery phase in the latter part of the period.
- Adjusted Net Revenue Growth
- A consistent upward trend is observed in adjusted net revenue, which grew from 7,721 million USD in 2020 to 18,978 million USD by 2025. This steady increase indicates a strong expansion in market presence and revenue-generating capacity over the six-year duration.
- Economic Profit Performance
- Economic profit transitioned from a positive value of 107 million USD in 2020 to a period of substantial value destruction. The deficit widened sharply, reaching its lowest point in 2023 at -2,586 million USD. However, a corrective trend emerged thereafter, with economic profit improving to -2,212 million USD in 2024 and further recovering to -1,274 million USD by 2025.
- Economic Profit Margin Dynamics
- The economic profit margin mirrored the volatility of the absolute profit figures, shifting from a positive 1.39% in 2020 to a deep negative peak of -18.77% in 2022. Following this trough, the margin demonstrated a sustained recovery, improving to -17.86% in 2023, -13.62% in 2024, and finishing at -6.71% in 2025. This suggests that while the entity continues to operate below its cost of capital, the efficiency of value generation relative to revenue has improved significantly since 2022.
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