Intuit Inc. (NASDAQ:INTU)

The financial data reflects distinct trends in profitability and leverage ratios over the observed quarterly periods.

Return on Assets (ROA)

The ROA shows an initial high point in the quarters starting from October 2018 through early 2020, with values peaking around 24.78% to 25.55%. Following this period, there is a notable decline, dropping to lower levels between 6.93% and 14.07% throughout 2021 and into early 2022. After this decline, the ROA stabilizes more recently in the range of approximately 7% to 9.7%, demonstrating a moderate recovery and consistent performance in the most current periods.

Financial Leverage

Financial leverage fluctuates mildly throughout the timeline, generally staying within a ratio range of about 1.5 to 2.1. There is a peak in mid-2020 at approximately 2.14, after which the leverage ratio decreases slightly and stabilizes between 1.6 and 1.8. In recent quarters, there is a slight upward trend reaching around 1.82, suggesting a modest increase in the use of debt relative to equity.

Return on Equity (ROE)

ROE initially follows a pattern similar to ROA, with very high performance around 41% to 44% in the late 2018 to early 2020 periods. This is followed by a noticeable decline to the range of approximately 11.7% to 21.5% during 2021 and early 2022. In later periods, ROE shows gradual improvement, trending upward to approximately 16% to 17.2% in the most recent quarters. The recovery is sustained but remains significantly below the peak levels observed earlier.

Overall, the data indicates a period of strong profitability in the earlier years, with a pronounced decline coinciding with or following early 2020. Leverage remains relatively stable, with a brief increase mid-2020 but no extreme volatility. Returns to shareholders and asset efficiency both declined but have been recovering gradually and demonstrating stabilization in recent quarters, suggesting adaptation to changing market or operational conditions.

The financial data reveals several notable trends across the observed periods.

Net Profit Margin

The net profit margin demonstrates variability with an initial high of around 22.79-23.93% between late 2018 and mid-2021, indicating strong profitability during this timeframe. However, from late 2021, there is a discernible decline, reaching a low near 14.1% in early 2023. Subsequently, a gradual recovery unfolds, with the margin rising to approximately 19.07% by early 2025. This pattern suggests a period of profit compression followed by partial restoration of profitability.

Asset Turnover

The asset turnover ratio shows a declining trend from 1.08 in late 2018 to a trough near 0.43 in early 2022, indicative of decreasing efficiency in asset usage to generate revenue. Post-2022, modest improvements are observed, with the ratio fluctuating around 0.5 to 0.54, yet remaining significantly below earlier levels. This indicates some recovery in operational efficiency, albeit not reaching previous highs.

Financial Leverage

The financial leverage ratio exhibits fluctuations within a moderate range, generally between 1.5 and 1.9. Noteworthy spikes occur around mid-2020 and in early 2025, where leverage inches above 1.8. Overall, the leverage maintains a stable profile, suggesting consistent use of debt relative to equity, with occasional increases likely reflecting strategic financing decisions.

Return on Equity (ROE)

ROE follows a trend closely related to net profit margin and asset turnover, beginning with elevated values around 40-44% in 2019 and early 2020. A marked decline ensues, bottoming near 11.69% in mid-2022, reflective of diminished profitability and efficiency. Since then, ROE exhibits a gradual upward trajectory, reaching over 17% by early 2025. This recovery trajectory indicates improving returns to shareholders after a period of contraction.

In summary, the company experienced a phase of strong profitability and operational efficiency through 2019 and early 2020, followed by a decline across profitability margins and asset utilization efficiency through 2021 and 2022. Financial leverage remained relatively stable, suggesting controlled financial risk. From 2023 onwards, key indicators show signs of recovery, hinting at an improving operating environment and restored capacity to generate shareholder value.

The analyzed financial ratios exhibit notable fluctuations over the reported periods, reflecting changes in operational efficiency, profitability, and financial structure.

Tax Burden

The tax burden ratio remains relatively stable across the timeline, ranging mostly between 0.77 and 0.85. There is a slight downward trend observable starting from early 2022, moving from approximately 0.84 to about 0.80 by early 2025, indicating a marginal reduction in the proportion of earnings paid as tax.

Interest Burden

This ratio shows a gradual decline from around 0.99 in late 2019 towards 0.92 by late 2023, followed by a modest recovery to approximately 0.95 by early 2025. The decline suggests slightly increased interest costs or lower earnings before interest and taxes during that phase, with a partial improvement thereafter.

EBIT Margin

The EBIT margin displays volatility, initially stable near 27-28% during late 2018 and early 2019, but it experiences a pronounced drop to around 18-20% between late 2021 and early 2023. A recovery phase is evident starting mid-2023, returning to approximately 25% by early 2025. This pattern indicates challenges in operating profitability during the middle periods followed by an improving margin in more recent quarters.

Asset Turnover

Asset turnover ratios decline markedly from above 1.0 in early periods to below 0.5 in several quarters post-2020, with values fluctuating around 0.5 thereafter. This trend points to a decreasing efficiency in utilizing assets to generate sales, with some stabilization but no significant recovery in later quarters.

Financial Leverage

Financial leverage demonstrates variability, initially ranging around 1.7 to 1.9, spiking above 2.1 in mid-2020, and then returning to the 1.5-1.8 range for most of the following periods. Towards the end of the timeline, there is a subtle increasing pattern, reaching 1.82 by early 2025, suggesting a conservative but gradually incrementing use of debt financing relative to equity.

Return on Equity (ROE)

ROE shows substantial fluctuation, peaking at approximately 44% around early 2020, followed by a significant decline to a low near 11-13% between mid-2021 and early 2023. From mid-2023 onwards, there is a moderate upward trend reaching above 17% by early 2025. This trajectory highlights a period of reduced overall profitability impacting shareholders' returns, with recent signs of improvement.

Overall, the financial data depict a period of operational and profitability challenges primarily centered around late 2020 to early 2023, notably in asset efficiency and EBIT margin. Key profitability metrics such as ROE and EBIT margin declined sharply but began to recover toward the most recent periods. Financial leverage remained within a moderate range with some variability, and the burden ratios suggest stable tax impacts but increased interest-related costs during the mid-phase of the timeline, partially reversing later. The gradual recovery in profitability ratios toward the end points to ongoing efforts to enhance operational efficiency and financial performance.

Net Profit Margin

The net profit margin exhibits a fluctuating but generally declining trend over the observed periods. Initially, it remains near or above 22%, reaching a peak of approximately 25.1%. Subsequently, a downward trend is evident, falling to around 14.1% at the lowest point. Following this, the margin shows a moderate recovery, stabilizing around 17-19% towards the latest periods.

Asset Turnover

The asset turnover ratio demonstrates a notable decline from a high of approximately 1.12 to a low near 0.43, indicating decreasing efficiency in utilizing assets to generate revenue. After this significant decrease, the ratio stabilizes at a lower level between 0.45 and 0.54, suggesting limited improvement in asset utilization in recent periods.

Return on Assets (ROA)

ROA follows a similar pattern to net profit margin and asset turnover, with an initial elevated level above 24%, followed by a substantial decline to under 8%. In later periods, a slight recovery is observed, with ROA climbing modestly to around 9.5%, but it remains well below earlier peaks. This indicates reduced overall efficiency in generating profits from assets over time, with only limited recent improvement.

Tax Burden

From October 2019 to April 2025, the tax burden ratio remains relatively stable, fluctuating between 0.77 and 0.85. The ratio peaks around 0.85 in mid-2019 before experiencing a slight downward trend, reaching a low near 0.77 in early 2023. There is a modest recovery thereafter, ending close to 0.80 by April 2025. This indicates a consistent tax impact on earnings over the observed period with minor variability.

Interest Burden

The interest burden ratio shows a gradual declining trend from about 0.99 in late 2019 to approximately 0.92 in mid-2023, indicating an increasing interest expense relative to earnings before interest and taxes. Slight improvements are observed toward early 2024, with the ratio stabilizing close to 0.94–0.95 by April 2025. This reflects a modest increase in interest costs or changes in debt structure impacting profitability over time.

EBIT Margin

The EBIT margin exhibits considerable variation across the timeframe. Initiating at nearly 28% in late 2018 and early 2019, it peaks at approximately 30.7% in early 2020. Following this, a notable decline occurs, bottoming around 18.5% in early 2023. Post this low, a gradual recovery is observed, with the margin edging back up to about 25% by April 2025. This pattern may suggest external pressures or increased costs impacting operating efficiency, followed by progressive operational improvements or cost control measures.

Asset Turnover

This ratio experiences a downward trend starting from about 1.12 in early 2019 to a trough near 0.43 in late 2021, signaling diminishing efficiency in asset utilization to generate sales. After this nadir, the ratio improves steadily, settling around 0.50 to 0.54 in 2024 and early 2025. The initial decline could indicate either asset base expansion without proportionate sales growth or weakening sales volume, with subsequent recovery implying enhanced asset management or sales performance.

Return on Assets (ROA)

ROA follows a trend broadly consistent with the EBIT margin and asset turnover. It starts at approximately 25% in late 2018 and early 2019, decreases significantly to below 7.5% around 2022, reflecting reduced profitability relative to assets. From this point forward, ROA shows gradual improvement, reaching close to 9.5% in April 2025. The decline and recovery suggest periods of reduced operational efficiency and profit generation, followed by stabilization and moderate enhancement.

The analysis of the quarterly financial data reveals several notable trends in the profitability and burden ratios over the observed periods.

Tax Burden

The tax burden ratio demonstrates a relatively stable pattern, fluctuating slightly around the 0.80 to 0.83 range from October 2019 onwards. Earlier data points are unavailable, but from the first available data point, the ratio appears to maintain consistency, showing minor decreases towards early 2023 and then stabilizing again near 0.82 up to the last observed period in April 2025. This indicates a steady proportion of earnings retained after tax expenses over time.

Interest Burden

The interest burden ratio remains very high, predominantly around 0.99 during 2019 through early 2021, suggesting minimal interest expenses relative to earnings before interest and taxes. From 2021 onwards, there is a gradual but consistent decline down to approximately 0.92 by mid-2023, indicating a slight increase in interest expenses or reduced earnings before interest and taxes. However, toward the end of the period, this ratio shows a modest recovery to about 0.94-0.95, reflecting a partial easing in interest burden.

EBIT Margin

The EBIT margin exhibits notable volatility and a generally declining trend from late 2018 through mid-2022, falling from nearly 28% to below 21%. Peaks are observed intermittently, such as around early 2020, aligning with certain quarters where margins approach or surpass 28%. After reaching a low point in early 2022, the EBIT margin begins a gradual recovery trend, reaching approximately 25% by early 2025. This suggests operational challenges or cost pressures during the middle periods with subsequent improvement in profitability before interest and taxes.

Net Profit Margin

The net profit margin follows a pattern somewhat parallel to the EBIT margin but with smoother changes. Starting in the low-to-mid 20% range in late 2018 and early 2019, it declines steadily, reaching around 14% in early 2023, indicating pressures on overall profitability after all expenses. From this nadir, a recovery phase is evident, with margins improving to roughly 19% by early 2025. The net profit margin's resilience and recovery suggest effective management of costs beyond operating income, possibly aided by stable tax and interest burdens during this period.

In summary, the data reflects a period of declining profitability margins with relatively stable tax and interest expenses followed by a recovery phase in the most recent quarters. The company appears to have faced operational or market challenges resulting in squeezed margins but has made progress in restoring profitability by the end of the covered timeframe.