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 – 16.52% × 26,250 = 2,053
The financial performance between 2021 and 2026 is characterized by a period of significant capital expansion that initially eroded economic value, followed by a strong recovery driven by accelerated operational profitability.
- Net Operating Profit After Taxes (NOPAT)
- A general upward trajectory in NOPAT is observed, rising from 2,161 million in 2021 to 6,389 million by 2026. While a slight contraction occurred in 2023, with values dipping to 2,022 million, the subsequent years show an aggressive growth pattern, particularly between 2025 and 2026, where NOPAT increased by approximately 81%.
- Invested Capital and Cost of Capital
- Invested capital underwent a substantial increase between 2021 and 2022, growing from 12,248 million to 24,726 million. Following this surge, the capital base remained relatively stable, fluctuating between 23,712 million and 26,250 million through 2026. The cost of capital remained remarkably consistent throughout the period, maintaining a narrow range between 16.52% and 17.54%.
- Economic Profit and Value Creation
- Economic profit shifted from a near-breakeven position of 12 million in 2021 to deep negative territory, reaching a trough of -2,049 million in 2023. This value destruction was a direct result of the 2022 capital expansion, which significantly increased the capital charge faster than NOPAT could grow. A sustained recovery trend is evident from 2024 onward, as NOPAT growth outpaced the cost of capital, ultimately resulting in a return to positive economic profit of 2,053 million by 2026.
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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 | × | 17.81% | = | 16.17% | ||
| 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 | 16.52% | ||||||||||
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 | × | 17.81% | = | 17.19% | ||
| 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 | 17.32% | ||||||||||
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 | × | 17.81% | = | 17.16% | ||
| 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 | 17.29% | ||||||||||
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 | × | 17.81% | = | 17.08% | ||
| 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 | 17.17% | ||||||||||
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 | × | 17.81% | = | 16.76% | ||
| 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 | 16.84% | ||||||||||
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 | × | 17.81% | = | 17.53% | ||
| 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 | 17.54% | ||||||||||
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 | 2,053) | (715) | (1,645) | (2,049) | (1,863) | 12) | |
| Invested capital2 | 26,250) | 24,521) | 24,948) | 23,712) | 24,726) | 12,248) | |
| Performance Ratio | |||||||
| Economic spread ratio3 | 7.82% | -2.92% | -6.59% | -8.64% | -7.53% | 0.10% | |
| Benchmarks | |||||||
| Economic Spread Ratio, Competitors4 | |||||||
| Accenture PLC | — | 0.60% | 0.24% | 1.02% | 3.89% | 5.71% | |
| Adobe Inc. | — | 13.08% | 0.80% | 0.97% | 6.46% | 8.84% | |
| AppLovin Corp. | — | 28.27% | 0.55% | -20.58% | -26.78% | -30.15% | |
| Cadence Design Systems Inc. | — | -1.28% | -2.88% | 7.17% | 6.58% | 6.80% | |
| Datadog Inc. | — | -8.87% | -9.56% | -6.08% | -11.83% | -4.01% | |
| International Business Machines Corp. | — | -0.73% | -7.57% | -3.53% | -11.28% | -6.14% | |
| Microsoft Corp. | 8.84% | 5.58% | 7.47% | 10.51% | 18.50% | 27.54% | |
| Oracle Corp. | -3.93% | -8.07% | -7.92% | -8.73% | -7.70% | 0.51% | |
| Palantir Technologies Inc. | — | 41.58% | -12.34% | -9.06% | -32.80% | -40.26% | |
| Palo Alto Networks Inc. | -12.82% | -3.85% | 5.34% | 11.47% | 3.50% | -5.19% | |
| Salesforce Inc. | -7.08% | -12.51% | -14.32% | -17.76% | -14.64% | -12.49% | |
| ServiceNow Inc. | — | 2.67% | 5.94% | 5.24% | 0.73% | 1.95% | |
| Synopsys Inc. | — | -12.43% | -8.18% | -7.48% | -0.88% | -6.91% | |
| Workday Inc. | -9.57% | -11.67% | -13.07% | -19.29% | -14.12% | -19.37% | |
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 × 2,053 ÷ 26,250 = 7.82%
4 Click competitor name to see calculations.
The financial performance between 2021 and 2026 is characterized by a period of significant economic value destruction followed by a recovery toward positive value creation. An initial marginal positive economic profit in 2021 transitioned into a multi-year period of losses, peaking in 2023, before returning to profitability by 2026.
- Economic Profit Trends
- A sharp decline in economic profit occurred in 2022, dropping to negative 1,863 million US dollars, and reached its lowest point in 2023 at negative 2,049 million US dollars. From 2024 onward, a consistent upward trend is observed, with losses narrowing to negative 715 million US dollars in 2025 and finally reversing to a positive 2,053 million US dollars by 2026.
- Invested Capital Dynamics
- The capital base experienced a substantial increase in 2022, rising from 12,248 million US dollars to 24,726 million US dollars. This significant expansion in invested capital coincided with the onset of negative economic profit, suggesting a period of heavy investment that did not immediately generate returns exceeding the cost of capital. The capital level remained relatively stable between 2022 and 2025, eventually increasing further to 26,250 million US dollars in 2026.
- Economic Spread Ratio Analysis
- The economic spread ratio mirrors the volatility of economic profit, falling from a near-neutral 0.10% in 2021 to a trough of negative 8.64% in 2023. This negative spread indicates that the return on invested capital was insufficient to cover the cost of capital for several fiscal years. A steady recovery is noted from 2024 through 2026, where the ratio shifted from negative 6.59% to a positive 7.82%, signaling a return to efficient value creation.
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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 | 2,053) | (715) | (1,645) | (2,049) | (1,863) | 12) | |
| 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 | 9.55% | -3.77% | -10.13% | -14.15% | -14.50% | 0.13% | |
| Benchmarks | |||||||
| Economic Profit Margin, Competitors3 | |||||||
| Accenture PLC | — | 0.39% | 0.13% | 0.52% | 1.87% | 2.93% | |
| Adobe Inc. | — | 11.83% | 0.90% | 1.21% | 7.53% | 11.02% | |
| AppLovin Corp. | — | 29.05% | 0.54% | -28.17% | -50.15% | -60.37% | |
| Cadence Design Systems Inc. | — | -1.93% | -4.41% | 7.14% | 6.57% | 6.90% | |
| Datadog Inc. | — | -5.26% | -8.68% | -3.80% | -8.19% | -3.19% | |
| International Business Machines Corp. | — | -1.30% | -13.38% | -6.28% | -19.53% | -11.67% | |
| Microsoft Corp. | 14.84% | 8.33% | 10.44% | 11.97% | 17.73% | 22.86% | |
| Oracle Corp. | -9.63% | -16.18% | -15.08% | -16.89% | -14.14% | 1.01% | |
| Palantir Technologies Inc. | — | 21.54% | -10.70% | -4.86% | -55.03% | -66.31% | |
| Palo Alto Networks Inc. | -35.63% | -4.56% | 5.67% | 11.39% | 4.08% | -6.99% | |
| Salesforce Inc. | -15.16% | -27.01% | -33.09% | -44.91% | -40.63% | -28.65% | |
| ServiceNow Inc. | — | 2.94% | 4.89% | 4.22% | 0.59% | 1.69% | |
| Synopsys Inc. | — | -72.52% | -13.71% | -10.55% | -1.24% | -10.99% | |
| Workday Inc. | -11.50% | -12.39% | -14.55% | -23.67% | -19.14% | -25.28% | |
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 × 2,053 ÷ 21,497 = 9.55%
3 Click competitor name to see calculations.
The financial trajectory between July 2021 and July 2026 is characterized by consistent top-line growth contrasted with significant volatility in economic value creation. While revenue increased steadily throughout the period, economic profit experienced a deep contraction followed by a robust recovery, culminating in a strong positive position by the end of the analyzed timeframe.
- Adjusted Net Revenue Growth
- A consistent upward trend is observed in adjusted net revenue, which rose from 9,660 million USD in 2021 to 21,497 million USD in 2026. This represents a sustained expansion of the revenue base, maintaining a positive growth rate in every consecutive year.
- Economic Profit Performance
- Economic profit exhibited a sharp decline after July 2021, moving from a marginal gain of 12 million USD to a peak deficit of 2,049 million USD in 2023. Following this trough, a steady recovery phase occurred, with losses narrowing to 715 million USD by 2025 before swinging to a substantial surplus of 2,053 million USD in 2026.
- Economic Profit Margin Analysis
- The economic profit margin mirrored the volatility of the absolute economic profit. After nearly breaking even in 2021 (0.13%), the margin collapsed to -14.50% in 2022 and -14.15% in 2023, indicating that the returns on invested capital were significantly below the cost of capital during this window. A progressive recovery is evident from 2024 onwards, with the margin improving to -10.13% in 2024, -3.77% in 2025, and finally reaching a positive 9.55% in 2026.
The divergence between the steady growth in adjusted net revenue and the fluctuations in economic profit suggests a period of intense capital investment or increased cost of capital between 2022 and 2025. The return to a positive economic profit margin in 2026 indicates that the company has successfully scaled its operations to a point where the generated returns now exceed the required cost of capital, effectively creating economic value.
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