Intuit Inc. (NASDAQ:INTU)

Return on Assets (ROA)

The Return on Assets displayed a declining trend from 24.78% in 2019 to 7.45% in 2022, indicating a significant decrease in asset profitability over this period. After 2022, a modest recovery is noticeable, with ROA improving to 8.58% in 2023 and further to 9.22% in 2024, suggesting some improvement in asset utilization efficiency in the more recent years.

Financial Leverage

Financial Leverage experienced fluctuations but maintained a relatively stable range overall. It rose from 1.68 in 2019 to a peak of 2.14 in 2020, then decreased sharply to 1.57 in 2021. Subsequently, it showed a gradual upward movement, reaching 1.69 in 2022, slightly decreasing to 1.61 in 2023, and finally increasing to 1.74 in 2024. This pattern suggests moderate variability in the use of debt financing, with no clear long-term increasing or decreasing trend.

Return on Equity (ROE)

Return on Equity exhibited a downward trajectory from 2019 to 2022, falling from a high of 41.53% to 12.57%. This represents a notable reduction in shareholder returns during that time frame. However, from 2022 onwards, ROE showed a gradual improvement, increasing to 13.81% in 2023 and further to 16.07% in 2024, reflecting some recovery in equity profitability in recent years. The pattern broadly mirrors the trend observed in ROA but with larger percentage changes, consistent with varying financial leverage levels.

The financial data reveals several notable trends related to profitability, efficiency, and leverage over the analyzed periods.

Net Profit Margin

The net profit margin exhibited a generally declining trend from July 2019 to July 2022, decreasing from 22.95% to 16.23%. A slight recovery was observed thereafter, reaching 18.19% by July 2024. This suggests a reduction in profitability efficiency during the middle years, followed by a moderate improvement in the most recent period.

Asset Turnover

Asset turnover showed a consistent downward trajectory across the entire timeframe, falling from 1.08 in July 2019 to 0.51 in July 2024. This decline indicates a decreasing ability to generate revenue from assets, suggesting either asset base growth without corresponding revenue increases or reduced operational efficiency.

Financial Leverage

Financial leverage fluctuated throughout the periods. It increased sharply from 1.68 in July 2019 to 2.14 in July 2020, then decreased to 1.57 in July 2021. Subsequent years recorded moderate increases and decreases, with a final value of 1.74 in July 2024. These variations reflect changing reliance on debt or other liabilities to finance assets.

Return on Equity (ROE)

ROE experienced a prominent decline from 41.53% in July 2019 to 12.57% in July 2022, marking a substantial decrease in shareholder returns. This was followed by a gradual recovery, ending at 16.07% in July 2024. The trend mirrors the patterns observed in net profit margin and asset turnover, highlighting challenges in maintaining equity profitability during the middle periods and partial improvement later.

Overall, the data indicates that the company faced decreasing profitability and operational efficiency from 2019 through 2022, as evidenced by falling net profit margin, asset turnover, and ROE. Financial leverage showed some variability, suggesting adjustments in the company's capital structure. The partial rebound in profitability and ROE in the last two years points to some recovery measures or market improvements; however, asset turnover remained weak, signaling ongoing challenges in asset utilization.

The financial data reveals several notable trends and shifts over the analyzed periods.

Tax Burden

The tax burden ratio has remained relatively stable, oscillating slightly around 0.80 to 0.83. This indicates a consistent proportion of earnings retained after taxes, without significant fluctuations over time.

Interest Burden

There is a gradual decline in the interest burden ratio, moving from 0.99 in earlier years to a low of 0.92 before partially recovering to 0.94. This suggests an increased impact of interest expenses on earnings, albeit with some recent improvement.

EBIT Margin

The EBIT margin experienced a peak around 28.81% but has generally trended downward, hitting a low near 20.61% before recovering modestly to around 23.29%. This reflects a reduction in operating profitability over the period, with signs of stabilization or slight improvement in the most recent year.

Asset Turnover

The asset turnover ratio shows a clear declining trend, decreasing from 1.08 to approximately 0.51. This indicates that asset utilization efficiency has diminished, suggesting that revenue generation per unit of asset has significantly reduced over time.

Financial Leverage

Financial leverage has fluctuated, initially rising to 2.14 before declining and then increasing again toward the end of the period. This variation reflects changing reliance on debt financing relative to equity, with no clear directional trend but an overall moderate leverage level.

Return on Equity (ROE)

ROE has experienced a marked decline from a high of over 41% down to approximately 12.57%, followed by a gradual recovery to around 16.07%. This significant decrease indicates reduced efficiency in generating shareholder returns, influenced likely by declining margins and asset turnover, though recent figures suggest some improvement.

In summary, the company has faced challenges in maintaining profitability and asset efficiency, as reflected in falling EBIT margins and asset turnover. The return on equity mirrors these trends with a significant decline followed by minor recovery. Interest costs have had a somewhat increased burden in recent years, while financial leverage shows moderate and fluctuating usage. The tax burden remains stable throughout the analyzed periods.

Net Profit Margin

The net profit margin exhibited a general decline from 22.95% in 2019 to a low of 16.23% in 2022. There was a slight recovery in the subsequent years, reaching 18.19% by 2024. This indicates a reduction in profitability relative to revenue over the period, with modest improvement in the last two years.

Asset Turnover

Asset turnover demonstrated a consistent downward trend, decreasing from 1.08 in 2019 to 0.46 in 2022. Although there was a minor increase in 2023 to 0.52, it slightly declined again to 0.51 in 2024. This trend reflects decreasing efficiency in generating revenue from assets over time, with a marginal stabilization in the last two years.

Return on Assets (ROA)

Return on assets fell significantly from 24.78% in 2019 to 7.45% in 2022, showing a substantial drop in overall asset profitability. The ratio improved moderately to 9.22% by 2024, following a slight increase in 2023. Despite this recovery, ROA remains considerably lower than the initial level in 2019.

Tax Burden

The tax burden ratio remained relatively stable over the analyzed period, fluctuating narrowly between 0.80 and 0.83. This stability suggests a consistent effective tax rate impact on the company's earnings after taxes.

Interest Burden

This ratio showed a slight decline from 0.99 in 2019 and 2020 to a low of 0.92 in 2023, before modestly recovering to 0.94 in 2024. The downward trend indicates a slight increase in interest expenses relative to earnings before interest and taxes, reflecting potential changes in the company’s financing costs or debt levels.

EBIT Margin

The EBIT margin exhibited a downward trajectory from 27.95% in 2019 to a low point of 20.61% in 2022, followed by a moderate recovery to 23.29% in 2024. Despite the partial rebound, overall profitability at the operating level declined over the period, suggesting increasing costs or pricing pressures impacting operational efficiency.

Asset Turnover

A noticeable decrease in asset turnover was observed, dropping from 1.08 in 2019 to approximately 0.51 by 2024. This decline implies reduced efficiency in utilizing assets to generate revenue, indicating either asset base growth outpacing revenue or challenges in revenue generation relative to asset investments.

Return on Assets (ROA)

The ROA followed a significant downward trend from 24.78% in 2019 to 7.45% in 2022, with a minor upward adjustment to 9.22% by 2024. This sharp decline reflects the combined effects of reduced profitability margins and declining asset utilization efficiency, showing a diminished overall effectiveness in generating returns from assets.

Tax Burden

The tax burden ratio remained relatively stable over the analysis period, fluctuating slightly between 0.80 and 0.83. This indicates consistent tax expense management relative to pre-tax earnings, with a minor dip observed in fiscal years 2022 and 2023 before reverting to earlier levels in 2024.

Interest Burden

The interest burden ratio showed a gradual decline from 0.99 in 2019 through 2021 to 0.92 in 2023, suggesting an increasing impact of interest expenses on earnings before tax during this period. However, a slight improvement to 0.94 occurred in 2024, indicating modest relief in interest costs or better management of debt obligations.

EBIT Margin

EBIT margin demonstrated a downward trend overall, starting at 27.95% in 2019 and falling to a low of 20.61% in 2022. There was a partial recovery afterwards, reaching 23.29% in 2024. This pattern highlights a reduction in operating profitability over the middle years followed by some improvement, possibly reflecting operational challenges and subsequent efficiency enhancements.

Net Profit Margin

Net profit margin followed a similar trajectory to EBIT margin, decreasing from 22.95% in 2019 to 16.23% in 2022. It showed modest gains in the following years, moving up to 18.19% by 2024. The decline and partial rebound in net profitability suggest pressures on overall profitability, inclusive of operating and non-operating factors, which have been somewhat mitigated in recent periods.