Stock Analysis on Net
Stock Analysis on Net

Intuit Inc. (NASDAQ:INTU)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Microsoft Excel LibreOffice Calc

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Intuit Inc., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
Jul 31, 2021 20.89% = 13.29% × 1.57
Jul 31, 2020 35.76% = 16.70% × 2.14
Jul 31, 2019 41.53% = 24.78% × 1.68
Jul 31, 2018 51.44% = 23.39% × 2.20
Jul 31, 2017 71.71% = 23.87% × 3.00
Jul 31, 2016 84.32% = 23.04% × 3.66

Based on: 10-K (filing date: 2021-09-08), 10-K (filing date: 2020-08-31), 10-K (filing date: 2019-08-30), 10-K (filing date: 2018-08-31), 10-K (filing date: 2017-09-01), 10-K (filing date: 2016-09-01).

The primary reason for the decrease in return on equity ratio (ROE) over 2021 year is the decrease in financial leverage ratio.

Three-Component Disaggregation of ROE

Intuit Inc., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Jul 31, 2021 20.89% = 21.41% × 0.62 × 1.57
Jul 31, 2020 35.76% = 23.78% × 0.70 × 2.14
Jul 31, 2019 41.53% = 22.95% × 1.08 × 1.68
Jul 31, 2018 51.44% = 20.31% × 1.15 × 2.20
Jul 31, 2017 71.71% = 18.76% × 1.27 × 3.00
Jul 31, 2016 84.32% = 20.86% × 1.10 × 3.66

Based on: 10-K (filing date: 2021-09-08), 10-K (filing date: 2020-08-31), 10-K (filing date: 2019-08-30), 10-K (filing date: 2018-08-31), 10-K (filing date: 2017-09-01), 10-K (filing date: 2016-09-01).

The primary reason for the decrease in return on equity ratio (ROE) over 2021 year is the decrease in financial leverage ratio.

Five-Component Disaggregation of ROE

Intuit Inc., decomposition of ROE

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Jul 31, 2021 20.89% = 0.81 × 0.99 × 26.83% × 0.62 × 1.57
Jul 31, 2020 35.76% = 0.83 × 0.99 × 28.81% × 0.70 × 2.14
Jul 31, 2019 41.53% = 0.83 × 0.99 × 27.95% × 1.08 × 1.68
Jul 31, 2018 51.44% = 0.81 × 0.99 × 25.54% × 1.15 × 2.20
Jul 31, 2017 71.71% = 0.71 × 0.98 × 27.00% × 1.27 × 3.00
Jul 31, 2016 84.32% = 0.71 × 0.98 × 30.06% × 1.10 × 3.66

Based on: 10-K (filing date: 2021-09-08), 10-K (filing date: 2020-08-31), 10-K (filing date: 2019-08-30), 10-K (filing date: 2018-08-31), 10-K (filing date: 2017-09-01), 10-K (filing date: 2016-09-01).

The primary reason for the decrease in return on equity ratio (ROE) over 2021 year is the decrease in financial leverage ratio.

Two-Component Disaggregation of ROA

Intuit Inc., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Jul 31, 2021 13.29% = 21.41% × 0.62
Jul 31, 2020 16.70% = 23.78% × 0.70
Jul 31, 2019 24.78% = 22.95% × 1.08
Jul 31, 2018 23.39% = 20.31% × 1.15
Jul 31, 2017 23.87% = 18.76% × 1.27
Jul 31, 2016 23.04% = 20.86% × 1.10

Based on: 10-K (filing date: 2021-09-08), 10-K (filing date: 2020-08-31), 10-K (filing date: 2019-08-30), 10-K (filing date: 2018-08-31), 10-K (filing date: 2017-09-01), 10-K (filing date: 2016-09-01).

The primary reason for the decrease in return on assets ratio (ROA) over 2021 year is the decrease in asset turnover ratio.

Four-Component Disaggregation of ROA

Intuit Inc., decomposition of ROA

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Jul 31, 2021 13.29% = 0.81 × 0.99 × 26.83% × 0.62
Jul 31, 2020 16.70% = 0.83 × 0.99 × 28.81% × 0.70
Jul 31, 2019 24.78% = 0.83 × 0.99 × 27.95% × 1.08
Jul 31, 2018 23.39% = 0.81 × 0.99 × 25.54% × 1.15
Jul 31, 2017 23.87% = 0.71 × 0.98 × 27.00% × 1.27
Jul 31, 2016 23.04% = 0.71 × 0.98 × 30.06% × 1.10

Based on: 10-K (filing date: 2021-09-08), 10-K (filing date: 2020-08-31), 10-K (filing date: 2019-08-30), 10-K (filing date: 2018-08-31), 10-K (filing date: 2017-09-01), 10-K (filing date: 2016-09-01).

The primary reason for the decrease in return on assets ratio (ROA) over 2021 year is the decrease in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

Intuit Inc., decomposition of net profit margin ratio

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Jul 31, 2021 21.41% = 0.81 × 0.99 × 26.83%
Jul 31, 2020 23.78% = 0.83 × 0.99 × 28.81%
Jul 31, 2019 22.95% = 0.83 × 0.99 × 27.95%
Jul 31, 2018 20.31% = 0.81 × 0.99 × 25.54%
Jul 31, 2017 18.76% = 0.71 × 0.98 × 27.00%
Jul 31, 2016 20.86% = 0.71 × 0.98 × 30.06%

Based on: 10-K (filing date: 2021-09-08), 10-K (filing date: 2020-08-31), 10-K (filing date: 2019-08-30), 10-K (filing date: 2018-08-31), 10-K (filing date: 2017-09-01), 10-K (filing date: 2016-09-01).

The primary reason for the decrease in net profit margin ratio over 2021 year is the decrease in operating profitability measured by EBIT margin ratio.