Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
Return on Invested Capital (ROIC)
Intuit Inc., ROIC 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) | |||||||
| Net operating profit after taxes (NOPAT)1 | 6,389) | 3,531) | 2,668) | 2,022) | 2,300) | 2,161) | |
| Invested capital2 | 26,250) | 24,521) | 24,948) | 23,712) | 24,726) | 12,248) | |
| Performance Ratio | |||||||
| ROIC3 | 24.34% | 14.40% | 10.69% | 8.53% | 9.30% | 17.64% | |
| Benchmarks | |||||||
| ROIC, Competitors4 | |||||||
| Accenture PLC | — | 20.11% | 20.33% | 21.14% | 23.93% | 25.83% | |
| Adobe Inc. | — | 33.16% | 21.19% | 21.68% | 26.93% | 29.44% | |
| AppLovin Corp. | — | 63.82% | 35.87% | 11.27% | -3.27% | 0.83% | |
| Cadence Design Systems Inc. | — | 15.91% | 14.27% | 24.69% | 23.98% | 24.26% | |
| Datadog Inc. | — | 11.73% | 10.63% | 14.64% | 8.75% | 16.66% | |
| International Business Machines Corp. | — | 10.92% | 4.46% | 7.72% | -0.61% | 3.86% | |
| Microsoft Corp. | 26.89% | 23.84% | 25.70% | 28.71% | 36.59% | 45.56% | |
| Oracle Corp. | 14.64% | 12.27% | 11.71% | 10.34% | 9.70% | 17.55% | |
| Palantir Technologies Inc. | — | 67.44% | 13.53% | 16.73% | -7.21% | -14.60% | |
| Palo Alto Networks Inc. | 5.32% | 14.40% | 23.08% | 28.59% | 19.73% | 11.48% | |
| Salesforce Inc. | 12.76% | 8.20% | 6.31% | 2.31% | 5.42% | 8.25% | |
| ServiceNow Inc. | — | 19.66% | 23.07% | 22.31% | 17.69% | 18.88% | |
| Synopsys Inc. | — | 4.23% | 10.31% | 11.03% | 17.54% | 11.52% | |
| Workday Inc. | 10.47% | 9.13% | 7.80% | 1.25% | 6.56% | 1.38% | |
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 Invested capital. See details »
3 2026 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 6,389 ÷ 26,250 = 24.34%
4 Click competitor name to see calculations.
An analysis of the financial trajectory between July 2021 and July 2026 reveals a distinct U-shaped recovery in capital efficiency, characterized by an initial expansion of the capital base followed by a period of significant growth in operating profitability.
- Invested Capital Dynamics
- A substantial increase in invested capital occurred between July 2021 and July 2022, rising from 12,248 million to 24,726 million. This represents a more than twofold increase in the asset base within a single year. Following this surge, the invested capital remained relatively stable, fluctuating between 23,712 million and 26,250 million through July 2026, indicating a shift from a phase of aggressive expansion to one of capital maintenance.
- Net Operating Profit After Taxes (NOPAT) Performance
- NOPAT exhibited initial volatility, increasing slightly in 2022 to 2,300 million before declining to 2,022 million in 2023. A strong growth trajectory is observed from 2024 onward, with NOPAT accelerating from 2,668 million to a projected 6,389 million by July 2026. The sharp increase in the final two periods suggests a significant improvement in operational scale or margin expansion.
- Return on Invested Capital (ROIC) Trends
- The ROIC experienced a sharp contraction from 17.64% in 2021 to a low of 8.53% in 2023. This decline was primarily driven by the rapid expansion of the invested capital base, which outpaced the growth of operating profits. A recovery trend is evident from 2024, with ROIC climbing to 10.69% and 14.40% in 2024 and 2025, respectively, before reaching a peak of 24.34% in 2026. This trend indicates that the heavy capital investments made in 2022 are translating into higher operational returns over time.
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Decomposition of ROIC
Intuit Inc., decomposition of ROIC
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 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
The return on invested capital (ROIC) exhibited a V-shaped trajectory over the analyzed period. After a significant decline from 17.64% in 2021 to a trough of 8.53% in 2023, a strong recovery phase is observed, culminating in a peak of 24.34% by 2026. This evolution is the result of fluctuating operational margins, capital efficiency, and tax effects.
- Operating Profit Margin (OPM)
- A contraction in operational profitability occurred between 2021 and 2022, with the margin falling from 28.02% to 21.00%. However, a consistent upward trend followed, with the margin expanding annually to reach 30.84% by 2026. This recovery indicates improved operational efficiency and cost management over the latter half of the period.
- Turnover of Capital (TO)
- Capital utilization experienced a sharp decline in 2022, dropping to 0.52 from 0.79 in 2021. This suggests a period of increased capital investment or a temporary decline in revenue generation per unit of capital. A steady recovery is observed from 2023 onward, with the ratio returning to 0.82 by 2026, signaling an optimization of the asset base to drive sales.
- Tax Efficiency (1 – Effective Cash Tax Rate)
- The after-tax component of the ROIC decomposition showed significant volatility. A notable decrease occurred in 2023, where the value dropped to 60.51%, representing a higher effective cash tax burden. This was followed by a gradual increase, peaking at 96.38% in 2026, which contributed positively to the overall surge in ROIC during the final year.
- Composite Impact on ROIC
- The decline in ROIC during 2022 and 2023 was primarily driven by the simultaneous erosion of operating margins and capital turnover. Conversely, the acceleration of ROIC from 2024 to 2026 was fueled by a synchronized improvement across all three drivers: expanding profit margins, recovering capital efficiency, and a significantly lower effective cash tax rate in the final period.
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Operating Profit Margin (OPM)
Intuit Inc., OPM 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) | |||||||
| Net operating profit after taxes (NOPAT)1 | 6,389) | 3,531) | 2,668) | 2,022) | 2,300) | 2,161) | |
| Add: Cash operating taxes2 | 240) | 1,538) | 1,276) | 1,320) | 398) | 545) | |
| Net operating profit before taxes (NOPBT) | 6,629) | 5,069) | 3,944) | 3,342) | 2,698) | 2,706) | |
| 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) | |
| Profitability Ratio | |||||||
| OPM3 | 30.84% | 26.71% | 24.30% | 23.08% | 21.00% | 28.02% | |
| Benchmarks | |||||||
| OPM, Competitors4 | |||||||
| Accenture PLC | — | 15.87% | 15.15% | 14.56% | 15.48% | 16.65% | |
| Adobe Inc. | — | 38.61% | 32.23% | 35.97% | 36.56% | 40.89% | |
| AppLovin Corp. | — | 75.98% | 40.17% | 20.43% | -1.60% | 5.23% | |
| Cadence Design Systems Inc. | — | 30.42% | 31.87% | 31.47% | 32.28% | 28.51% | |
| Datadog Inc. | — | 6.59% | 9.47% | 8.91% | 6.57% | 13.48% | |
| International Business Machines Corp. | — | 20.84% | 11.61% | 17.71% | 3.11% | 11.04% | |
| Microsoft Corp. | 50.15% | 45.60% | 45.67% | 43.20% | 43.28% | 43.49% | |
| Oracle Corp. | 42.22% | 31.76% | 30.01% | 26.91% | 24.11% | 40.03% | |
| Palantir Technologies Inc. | — | 34.55% | 11.18% | 9.03% | -8.42% | -23.57% | |
| Palo Alto Networks Inc. | 16.34% | 24.12% | 28.26% | 29.22% | 23.90% | 16.95% | |
| Salesforce Inc. | 29.96% | 24.08% | 19.05% | 8.46% | 16.42% | 20.31% | |
| ServiceNow Inc. | — | 22.90% | 20.13% | 18.76% | 14.87% | 17.20% | |
| Synopsys Inc. | — | 31.74% | 24.97% | 20.63% | 27.91% | 22.47% | |
| Workday Inc. | 13.26% | 10.08% | 8.65% | 3.29% | 8.82% | 2.23% | |
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 NOPAT. See details »
2 Cash operating taxes. See details »
3 2026 Calculation
OPM = 100 × NOPBT ÷ Adjusted net revenue
= 100 × 6,629 ÷ 21,497 = 30.84%
4 Click competitor name to see calculations.
An analysis of the operating performance from July 2021 to July 2026 indicates a period of significant revenue expansion coupled with an initial contraction and subsequent recovery in operating efficiency. While top-line growth remained consistent throughout the period, the operating profit margin experienced a notable decline before entering a phase of steady acceleration.
- Adjusted Net Revenue Trends
- A consistent upward trajectory in adjusted net revenue is observed, increasing from US$ 9,660 million in 2021 to US$ 21,497 million by 2026. This represents a sustained expansion of the revenue base, with significant absolute growth occurring annually.
- Net Operating Profit Before Taxes (NOPBT) Dynamics
- Net operating profit before taxes remained relatively stagnant between 2021 and 2022, with values of US$ 2,706 million and US$ 2,698 million, respectively. However, from 2023 onward, NOPBT exhibits accelerated growth, climbing to US$ 6,629 million by 2026, indicating that profit growth began to outpace revenue growth in the latter half of the analyzed timeframe.
- Operating Profit Margin (OPM) Fluctuations
- The operating profit margin displays a U-shaped pattern. After starting at 28.02% in 2021, the margin declined to a low of 21.00% in 2022, suggesting a temporary increase in operating expenses relative to revenue. Following this trough, the margin recovered progressively to 24.30% in 2024 and further expanded to 30.84% by 2026, surpassing the initial 2021 levels.
The convergence of rising net revenue and expanding operating margins indicates the realization of operating leverage. The trajectory through 2026 suggests an optimization of the cost structure relative to scale, resulting in an enhanced conversion of revenue into operating profit.
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Turnover of Capital (TO)
Intuit Inc., TO 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) | |||||||
| 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) | |
| Invested capital1 | 26,250) | 24,521) | 24,948) | 23,712) | 24,726) | 12,248) | |
| Efficiency Ratio | |||||||
| TO2 | 0.82 | 0.77 | 0.65 | 0.61 | 0.52 | 0.79 | |
| Benchmarks | |||||||
| TO, Competitors3 | |||||||
| Accenture PLC | — | 1.56 | 1.76 | 1.94 | 2.08 | 1.95 | |
| Adobe Inc. | — | 1.11 | 0.88 | 0.80 | 0.86 | 0.80 | |
| AppLovin Corp. | — | 0.97 | 1.04 | 0.73 | 0.53 | 0.50 | |
| Cadence Design Systems Inc. | — | 0.67 | 0.65 | 1.00 | 1.00 | 0.98 | |
| Datadog Inc. | — | 1.69 | 1.10 | 1.60 | 1.45 | 1.26 | |
| International Business Machines Corp. | — | 0.56 | 0.57 | 0.56 | 0.58 | 0.53 | |
| Microsoft Corp. | 0.60 | 0.67 | 0.72 | 0.88 | 1.04 | 1.20 | |
| Oracle Corp. | 0.41 | 0.50 | 0.53 | 0.52 | 0.54 | 0.51 | |
| Palantir Technologies Inc. | — | 1.93 | 1.15 | 1.86 | 0.60 | 0.61 | |
| Palo Alto Networks Inc. | 0.36 | 0.84 | 0.94 | 1.01 | 0.86 | 0.74 | |
| Salesforce Inc. | 0.47 | 0.46 | 0.43 | 0.40 | 0.36 | 0.44 | |
| ServiceNow Inc. | — | 0.91 | 1.22 | 1.24 | 1.24 | 1.16 | |
| Synopsys Inc. | — | 0.17 | 0.60 | 0.71 | 0.71 | 0.63 | |
| Workday Inc. | 0.83 | 0.94 | 0.90 | 0.82 | 0.74 | 0.77 | |
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 Invested capital. See details »
2 2026 Calculation
TO = Adjusted net revenue ÷ Invested capital
= 21,497 ÷ 26,250 = 0.82
3 Click competitor name to see calculations.
The analysis of capital efficiency reveals a significant strategic expansion in the capital base followed by a steady recovery in asset productivity over the six-year period.
- Revenue Trajectory
- Adjusted net revenue exhibits consistent and robust growth, increasing from 9,660 million USD in 2021 to 21,497 million USD by 2026. This sustained upward trend indicates a strong capacity for top-line expansion.
- Invested Capital Dynamics
- A substantial increase in invested capital is observed between 2021 and 2022, where the figure rose from 12,248 million USD to 24,726 million USD. Following this sharp expansion, the invested capital remained relatively stable, fluctuating between 23,712 million USD and 26,250 million USD through 2026.
- Turnover of Capital (TO) Performance
- The turnover ratio experienced a sharp decline from 0.79 in 2021 to 0.52 in 2022, directly correlating with the rapid expansion of the invested capital base. This indicates a temporary drop in capital efficiency as the organization integrated new assets or investments.
- Efficiency Recovery and Optimization
- Following the 2022 low, a consistent recovery trend is evident. The turnover ratio climbed steadily from 0.61 in 2023 to 0.82 by 2026. This progression demonstrates that revenue growth has outpaced the growth of the capital base in recent years, resulting in capital productivity that exceeds the initial 2021 levels.
Overall, the data suggests a cycle of aggressive investment followed by a period of successful optimization, where the increased capital base is being effectively leveraged to drive higher revenue generation.
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Effective Cash Tax Rate (CTR)
Intuit Inc., CTR 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) | |||||||
| Net operating profit after taxes (NOPAT)1 | 6,389) | 3,531) | 2,668) | 2,022) | 2,300) | 2,161) | |
| Add: Cash operating taxes2 | 240) | 1,538) | 1,276) | 1,320) | 398) | 545) | |
| Net operating profit before taxes (NOPBT) | 6,629) | 5,069) | 3,944) | 3,342) | 2,698) | 2,706) | |
| Tax Rate | |||||||
| CTR3 | 3.62% | 30.34% | 32.36% | 39.49% | 14.74% | 20.15% | |
| Benchmarks | |||||||
| CTR, Competitors4 | |||||||
| Accenture PLC | — | 18.62% | 23.87% | 25.34% | 25.55% | 20.47% | |
| Adobe Inc. | — | 22.29% | 25.54% | 24.54% | 14.22% | 10.28% | |
| AppLovin Corp. | — | 13.66% | 13.75% | 24.45% | — | 68.18% | |
| Cadence Design Systems Inc. | — | 21.53% | 31.39% | 21.85% | 25.88% | 13.59% | |
| Datadog Inc. | — | -5.69% | -1.95% | -2.78% | 7.98% | 1.83% | |
| International Business Machines Corp. | — | 6.96% | 32.07% | 22.38% | 133.97% | 33.45% | |
| Microsoft Corp. | 9.94% | 22.05% | 21.33% | 24.32% | 18.98% | 13.05% | |
| Oracle Corp. | 14.96% | 22.60% | 25.73% | 25.66% | 26.20% | 13.28% | |
| Palantir Technologies Inc. | — | -1.13% | -4.95% | 0.60% | — | — | |
| Palo Alto Networks Inc. | 9.55% | 29.25% | 13.32% | 2.83% | 3.82% | 8.83% | |
| Salesforce Inc. | 8.82% | 26.52% | 23.51% | 31.02% | 8.32% | 6.83% | |
| ServiceNow Inc. | — | 5.30% | 5.72% | 4.32% | 4.41% | 5.03% | |
| Synopsys Inc. | — | 22.23% | 30.80% | 24.60% | 11.45% | 18.39% | |
| Workday Inc. | 5.00% | 3.78% | -0.43% | 53.58% | -0.77% | 19.25% | |
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 Cash operating taxes. See details »
3 2026 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 240 ÷ 6,629 = 3.62%
4 Click competitor name to see calculations.
An analysis of the financial data reveals a consistent upward trajectory in Net Operating Profit Before Taxes (NOPBT) contrasted by significant volatility in cash operating taxes and the resulting effective cash tax rate (CTR).
- Net Operating Profit Before Taxes (NOPBT) Performance
- A sustained growth pattern is evident in the NOPBT, which rose from US$ 2,706 million in 2021 to US$ 6,629 million by 2026. This represents a substantial increase in core operating profitability over the six-year period, characterized by steady annual gains starting after 2022.
- Cash Operating Taxes and CTR Volatility
- The effective cash tax rate exhibits high variance. Following a low of 14.74% in 2022, the CTR spiked to 39.49% in 2023, coinciding with a surge in cash operating taxes to US$ 1,320 million. The rate remained elevated through 2024 and 2025, stabilizing between 30% and 32%.
- Analysis of the 2026 Fiscal Period
- A significant divergence occurs in 2026, where NOPBT reached its peak of US$ 6,629 million, yet cash operating taxes dropped precipitously to US$ 240 million. This resulted in an effective cash tax rate of 3.62%, the lowest recorded value in the period analyzed, suggesting the impact of substantial tax credits, deferred tax asset utilization, or other one-time tax adjustments.
- Correlation between Profitability and Tax Burden
- There is a lack of linear correlation between operating profit growth and the cash tax burden. While profitability increased more than twofold from 2021 to 2026, the cash tax payments did not follow a commensurate path, moving from a moderate position to a peak in 2025 before collapsing in 2026.
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