Intuit Inc. (NASDAQ:INTU)

Return on Assets (ROA)

The ROA demonstrates a declining trend from 16.7% in 2020 to a low of 7.45% in 2022, indicating reduced efficiency in asset utilization during this period. From 2022 onwards, there is a gradual recovery, with ROA increasing to 10.47% by 2025. This suggests improvement in operational performance or asset management efficiency in recent years.

Financial Leverage

The financial leverage ratio decreased significantly from 2.14 in 2020 to 1.57 in 2021, indicating a reduction in reliance on debt relative to equity. Subsequently, the ratio fluctuated moderately between 1.61 and 1.88, with a slight upward trend towards 2025. This implies a cautious approach in leveraging, maintaining a relatively stable and moderate use of debt financing.

Return on Equity (ROE)

The ROE experienced a sharp decline from 35.76% in 2020 to 12.57% in 2022, mirroring the trend observed in ROA and indicative of reduced profitability for equity holders. After 2022, ROE shows a steady increase, reaching 19.63% in 2025, which may reflect operational improvements, better asset utilization, or effective financial leverage management.

Net Profit Margin

The net profit margin demonstrates a decreasing trend from 23.78% in 2020 to a low of 16.23% in 2022. Following this decline, it shows a gradual recovery, increasing to 20.55% by 2025. This pattern indicates initial pressure on profitability, which improves in the latter periods.

Asset Turnover

The asset turnover ratio steadily declines from 0.7 in 2020 to 0.46 in 2022, reflecting a reduction in efficiency in generating sales from assets. After 2022, the ratio stabilizes somewhat, fluctuating around 0.51 by 2024 and 2025, suggesting a plateau in asset utilization efficiency.

Financial Leverage

Financial leverage decreases significantly from 2.14 in 2020 to 1.57 in 2021, indicating a reduction in the use of debt relative to equity. Between 2021 and 2025, it experiences moderate fluctuations, gradually rising again to 1.88. This suggests a controlled increase in leverage over the later years.

Return on Equity (ROE)

ROE shows a pronounced downward trend from 35.76% in 2020 to 12.57% in 2022, signaling a decline in the company’s efficiency at generating profits from shareholders' equity. Subsequently, ROE improves steadily, reaching 19.63% in 2025. This recovery aligns with improvements in net profit margin and financial leverage, despite the asset turnover remaining relatively low.

Tax Burden

The tax burden ratio has exhibited relative stability over the analyzed periods, fluctuating slightly around the range of 0.80 to 0.83. This indicates a consistent proportion of pre-tax earnings retained after taxes, with no significant upward or downward trend.

Interest Burden

The interest burden ratio shows a gradual decline from 0.99 in 2020 to 0.92 in 2023, followed by a modest recovery to 0.95 by 2025. This suggests a slight increase in interest expenses relative to EBIT during the middle years, with some improvement in the later periods, potentially reflecting changes in debt levels or interest rates.

EBIT Margin

The EBIT margin experienced a notable decline from 28.81% in 2020 to a low of 20.61% in 2022. Subsequently, there was a recovery trend, with the margin rising to 26.98% by 2025. This pattern indicates the company faced margin pressure mid-period but managed to improve operational profitability in recent years.

Asset Turnover

Asset turnover decreased from 0.70 in 2020 to 0.46 in 2022, signaling reduced efficiency in utilizing assets to generate sales. Although there was some rebound to 0.51 in 2023, the ratio remained below earlier levels, indicating sustained lower asset utilization efficiency over the later periods.

Financial Leverage

Financial leverage showed significant variation, decreasing from 2.14 in 2020 to 1.57 in 2021, then fluctuating modestly before rising again to 1.88 by 2025. This reflects adjustments in the capital structure, with an initial reduction in leverage followed by a gradual increase, suggesting a shift toward higher reliance on debt or other liabilities in the capital base over time.

Return on Equity (ROE)

ROE declined sharply from 35.76% in 2020 to 12.57% in 2022. Afterward, the company achieved a gradual recovery, reaching 19.63% in 2025. This trend aligns with the movements observed in EBIT margin, asset turnover, and leverage ratios, indicating the combined effects of profitability, efficiency, and leverage on shareholder returns.

Net Profit Margin

The net profit margin exhibits a downward trend from 23.78% in 2020 to 16.23% in 2022, indicating a reduction in profitability relative to revenue during this period. However, starting in 2023, the margin shows a recovery, increasing steadily to 20.55% by 2025. This suggests an improvement in cost management or revenue quality in the later years.

Asset Turnover

Asset turnover declines significantly from 0.7 in 2020 to 0.46 in 2022, reflecting a diminishing efficiency in generating revenue from assets. Post-2022, the ratio stabilizes in the range of 0.51 to 0.52 through 2025, indicating a plateau in asset utilization efficiency without further decline or improvement.

Return on Assets (ROA)

Return on assets decreases sharply from 16.7% in 2020 to 7.45% in 2022, consistent with declines in both net profit margin and asset turnover. From 2023 onward, ROA gradually increases to 10.47% in 2025, aligning with the recovery seen in net profit margin while asset turnover remains stable. This trend highlights a partial restoration of overall asset profitability.

The financial data presents trends regarding profitability, efficiency, and burden metrics over a six-year period.

Tax Burden

The tax burden ratio remains relatively stable, fluctuating slightly between 0.80 and 0.83. This suggests a consistent tax expense relative to pre-tax income with minor variations year over year.

Interest Burden

The interest burden ratio exhibits a slight decline from 0.99 in 2020 to a low of 0.92 in 2023, indicating a reduction in interest expenses relative to EBIT. It then shows a modest increase back to 0.95 by 2025, implying some fluctuations but overall manageable interest costs within EBIT.

EBIT Margin

The EBIT margin demonstrates a downward trend from 28.81% in 2020 to a low of 20.61% in 2022, revealing a decrease in operating profitability. Subsequently, it recovers to 26.98% by 2025, indicating an improvement in operating efficiency or revenue generation capacity post-2022.

Asset Turnover

Asset turnover shows a notable decline from 0.70 in 2020 to 0.46 in 2022, reflecting reduced efficiency in generating sales from assets. After 2022, it stabilizes around 0.51 to 0.52, suggesting a plateau in asset utilization performance in recent years.

Return on Assets (ROA)

The ROA follows a similar declining pattern from 16.7% in 2020 down to 7.45% in 2022, signaling diminished overall profitability relative to asset base. Post-2022, ROA shows a gradual improvement, reaching 10.47% by 2025, indicating some recovery in generating returns from assets.

In summary, the data reveals a challenge in operational efficiency and profitability between 2020 and 2022, accompanied by decreased asset utilization. However, from 2023 onwards, there is a discernible recovery in both EBIT margin and ROA, despite a relatively stable tax burden and some fluctuation in interest costs. Asset turnover remains subdued compared to earlier years, highlighting potential ongoing constraints in asset productivity.

Tax Burden

The tax burden ratio has remained relatively stable over the periods analyzed, fluctuating slightly between 0.80 and 0.83. This indicates a consistent proportion of earnings retained after taxes, with minor variations that suggest stable tax management and no significant changes in tax structure or rates affecting the company.

Interest Burden

The interest burden ratio shows a slight declining trend from 0.99 in 2020 and 2021 to a low of 0.92 in 2023, followed by a modest recovery to 0.95 by 2025. This suggests the company experienced increasing interest expenses or debt servicing costs peaking around 2023 but managed to improve or stabilize these costs in subsequent years.

EBIT Margin

The EBIT margin demonstrates a notable downward trend from 28.81% in 2020 to a low of 20.61% in 2022. After this decrease, there is a recovery trend reaching 26.98% in 2025. This pattern reflects an initial erosion of operating profitability, possibly due to rising costs or competitive pressures, followed by improved operational efficiency or revenue growth in later years.

Net Profit Margin

Net profit margin follows a similar trajectory to EBIT margin, decreasing from 23.78% in 2020 to a minimum of 16.23% in 2022, then gradually increasing to 20.55% by 2025. This reveals the net profitability impact of the changes in operating earnings, alongside the influence of tax and interest expenses, which aligns with the observed trends in tax and interest burdens.