Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Intuit Inc., liquidity ratios
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).
The liquidity profile exhibits a general contraction from 2021 through 2025, followed by a recovery trend in 2026. While the company maintains a current ratio above 1.0 throughout the period, there is a notable divergence between general current assets and highly liquid assets, indicating a shift in the composition of short-term capital.
- Current Ratio
- The ratio decreased from a peak of 1.94 in 2021 to a low of 1.29 in 2024, before trending upward to 1.51 by 2026. This suggests that while the margin of safety for covering short-term obligations narrowed during the mid-period, it remains sufficient to meet liabilities.
- Quick Ratio
- A significant downward trend is observed, with the ratio falling from 1.65 in 2021 to a low of 0.63 in 2025. The sharp decline between 2023 and 2024, where the ratio dropped from 1.25 to 0.71, indicates a reduced ability to meet immediate obligations without relying on the sale of less liquid current assets. A partial recovery to 0.93 is noted in 2026.
- Cash Ratio
- The most pronounced decline is evident in the cash ratio, which plummeted from 1.46 in 2021 to 0.44 in 2025. This contraction suggests a strategic reduction in cash holdings or an increase in current liabilities. Similar to the quick ratio, a reversal of this trend occurred in 2026, with the ratio rising to 0.71.
The correlation between the decline in the quick and cash ratios relative to the more stable current ratio suggests an increasing reliance on non-cash current assets to support short-term solvency. However, the synchronized improvement across all three metrics in 2026 indicates a strengthening of the overall liquidity position.
AI Ask an analyst for more
Current Ratio
Intuit Inc., current ratio 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) | |||||||
| Current assets | 15,311) | 14,107) | 9,678) | 5,557) | 5,047) | 5,157) | |
| Current liabilities | 10,163) | 10,370) | 7,491) | 3,790) | 3,630) | 2,655) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 1.51 | 1.36 | 1.29 | 1.47 | 1.39 | 1.94 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Accenture PLC | — | 1.42 | 1.10 | 1.30 | 1.23 | 1.25 | |
| Adobe Inc. | — | 1.00 | 1.07 | 1.34 | 1.11 | 1.25 | |
| AppLovin Corp. | — | 3.32 | 2.19 | 1.71 | 3.35 | 5.05 | |
| Cadence Design Systems Inc. | — | 2.86 | 2.93 | 1.24 | 1.27 | 1.77 | |
| Datadog Inc. | — | 3.38 | 2.64 | 3.17 | 3.09 | 3.54 | |
| International Business Machines Corp. | — | 0.96 | 1.04 | 0.96 | 0.92 | 0.88 | |
| Microsoft Corp. | 1.23 | 1.35 | 1.27 | 1.77 | 1.78 | 2.08 | |
| Oracle Corp. | 1.12 | 0.75 | 0.72 | 0.91 | 1.62 | 2.30 | |
| Palantir Technologies Inc. | — | 7.11 | 5.96 | 5.55 | 5.17 | 4.34 | |
| Palo Alto Networks Inc. | 0.87 | 0.94 | 0.89 | 0.78 | 0.77 | 0.91 | |
| Salesforce Inc. | 0.76 | 1.06 | 1.09 | 1.02 | 1.05 | 1.23 | |
| ServiceNow Inc. | — | 1.00 | 1.10 | 1.06 | 1.11 | 1.05 | |
| Synopsys Inc. | — | 1.62 | 2.44 | 1.15 | 1.09 | 1.16 | |
| Workday Inc. | 1.32 | 1.90 | 1.97 | 1.75 | 1.03 | 1.12 | |
| Current Ratio, Sector | |||||||
| Software & Services | — | 1.25 | 1.19 | 1.40 | 1.43 | 1.68 | |
| Current Ratio, Industry | |||||||
| Information Technology | — | 1.39 | 1.24 | 1.41 | 1.37 | 1.55 | |
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 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 15,311 ÷ 10,163 = 1.51
2 Click competitor name to see calculations.
The company's liquidity position has undergone significant scaling and fluctuation over the six-year period ending July 31, 2026. While both short-term assets and liabilities have expanded substantially, the current ratio has transitioned from an initial high to a stabilized range, indicating a shift in the management of working capital.
- Current Ratio Trends
- The current ratio started at 1.94 in 2021, representing a strong liquidity cushion. A sharp decrease to 1.39 occurred by 2022, followed by a period of relative volatility where the ratio fluctuated between 1.29 and 1.47. In the final three years of the period, a gradual recovery trend is observed, with the ratio rising from a low of 1.29 in 2024 to 1.51 by July 31, 2026.
- Growth in Current Assets and Liabilities
- A substantial expansion in the balance sheet scale is evident. Current assets grew from US$ 5,157 million in 2021 to US$ 15,311 million in 2026. A significant acceleration in growth occurred between 2023 and 2025, during which assets increased from US$ 5,557 million to US$ 14,107 million. Current liabilities followed a similar upward trajectory, increasing from US$ 2,655 million in 2021 to a peak of US$ 10,370 million in 2025, before slightly contracting to US$ 10,163 million in 2026.
- Liquidity Analysis
- Despite the rapid increase in short-term obligations, the current ratio remained consistently above 1.0, suggesting that the company maintained the capacity to meet its short-term liabilities. The divergence between the rapid growth of assets and the slight reduction in liabilities between 2025 and 2026 contributed to the most recent improvement in the liquidity ratio.
AI Ask an analyst for more
Quick Ratio
Intuit Inc., quick ratio 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) | |||||||
| Cash and cash equivalents | 4,705) | 2,884) | 3,609) | 2,848) | 2,796) | 2,562) | |
| Investments | 2,495) | 1,668) | 465) | 814) | 485) | 1,308) | |
| Accounts receivable, net of allowance for doubtful accounts | 625) | 530) | 457) | 405) | 446) | 391) | |
| Notes receivable held for investment | 1,468) | 1,403) | 779) | 687) | 509) | 132) | |
| Notes receivable held for sale | 179) | —) | 3) | —) | —) | —) | |
| Total quick assets | 9,472) | 6,485) | 5,313) | 4,754) | 4,236) | 4,393) | |
| Current liabilities | 10,163) | 10,370) | 7,491) | 3,790) | 3,630) | 2,655) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 0.93 | 0.63 | 0.71 | 1.25 | 1.17 | 1.65 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Accenture PLC | — | 1.30 | 0.98 | 1.18 | 1.12 | 1.14 | |
| Adobe Inc. | — | 0.88 | 0.95 | 1.22 | 1.00 | 1.11 | |
| AppLovin Corp. | — | 3.23 | 2.04 | 1.54 | 3.08 | 4.82 | |
| Cadence Design Systems Inc. | — | 2.51 | 2.53 | 1.02 | 1.02 | 1.47 | |
| Datadog Inc. | — | 3.28 | 2.57 | 3.08 | 3.01 | 3.45 | |
| International Business Machines Corp. | — | 0.83 | 0.90 | 0.82 | 0.76 | 0.69 | |
| Microsoft Corp. | 0.93 | 1.16 | 1.06 | 1.54 | 1.57 | 1.90 | |
| Oracle Corp. | 1.01 | 0.61 | 0.59 | 0.74 | 1.43 | 2.15 | |
| Palantir Technologies Inc. | — | 6.99 | 5.83 | 5.41 | 4.92 | 4.11 | |
| Palo Alto Networks Inc. | 0.79 | 0.88 | 0.82 | 0.72 | 0.75 | 0.88 | |
| Salesforce Inc. | 0.64 | 0.93 | 0.96 | 0.90 | 0.93 | 1.11 | |
| ServiceNow Inc. | — | 0.91 | 1.02 | 1.00 | 1.06 | 1.01 | |
| Synopsys Inc. | — | 1.20 | 1.88 | 0.85 | 0.85 | 0.89 | |
| Workday Inc. | 1.22 | 1.80 | 1.87 | 1.66 | 0.96 | 1.07 | |
| Quick Ratio, Sector | |||||||
| Software & Services | — | 1.07 | 1.01 | 1.22 | 1.26 | 1.52 | |
| Quick Ratio, Industry | |||||||
| Information Technology | — | 1.09 | 0.96 | 1.12 | 1.09 | 1.30 | |
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 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 9,472 ÷ 10,163 = 0.93
2 Click competitor name to see calculations.
The liquidity profile exhibits a period of significant volatility, characterized by a marked decline in the quick ratio followed by a partial recovery. While total quick assets maintained an overall growth trajectory, the pace of increase in current liabilities substantially outstripped asset growth for several consecutive years, leading to a constrained liquidity position.
- Trend in Quick Assets
- Total quick assets increased from 4,393 million in July 2021 to 9,472 million by July 2026. The most substantial expansion occurred between 2025 and 2026, where assets grew by approximately 46% in a single fiscal year.
- Current Liabilities Expansion
- Current liabilities experienced an aggressive upward trend, rising from 2,655 million in 2021 to a peak of 10,370 million in 2025. A critical inflection point is observed between 2023 and 2024, during which liabilities nearly doubled from 3,790 million to 7,491 million, placing significant pressure on short-term solvency.
- Quick Ratio Analysis
- The quick ratio demonstrates a downward trend from a robust 1.65 in 2021 to a minimum of 0.63 in 2025. The descent below the 1.0 threshold in 2024 and 2025 indicates a period where liquid assets were insufficient to cover current liabilities. However, a recovery to 0.93 by July 2026 suggests a corrective shift in the balance sheet structure, driven by the surge in quick assets and a slight reduction in current liabilities.
AI Ask an analyst for more
Cash Ratio
Intuit Inc., cash ratio 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) | |||||||
| Cash and cash equivalents | 4,705) | 2,884) | 3,609) | 2,848) | 2,796) | 2,562) | |
| Investments | 2,495) | 1,668) | 465) | 814) | 485) | 1,308) | |
| Total cash assets | 7,200) | 4,552) | 4,074) | 3,662) | 3,281) | 3,870) | |
| Current liabilities | 10,163) | 10,370) | 7,491) | 3,790) | 3,630) | 2,655) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.71 | 0.44 | 0.54 | 0.97 | 0.90 | 1.46 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Accenture PLC | — | 0.56 | 0.26 | 0.50 | 0.45 | 0.52 | |
| Adobe Inc. | — | 0.65 | 0.75 | 0.95 | 0.75 | 0.84 | |
| AppLovin Corp. | — | 1.86 | 0.70 | 0.53 | 1.87 | 4.02 | |
| Cadence Design Systems Inc. | — | 1.93 | 2.03 | 0.72 | 0.66 | 1.13 | |
| Datadog Inc. | — | 2.81 | 2.25 | 2.58 | 2.48 | 2.94 | |
| International Business Machines Corp. | — | 0.37 | 0.45 | 0.39 | 0.28 | 0.22 | |
| Microsoft Corp. | 0.46 | 0.67 | 0.60 | 1.07 | 1.10 | 1.47 | |
| Oracle Corp. | 0.76 | 0.34 | 0.34 | 0.44 | 1.12 | 1.93 | |
| Palantir Technologies Inc. | — | 6.11 | 5.25 | 4.93 | 4.48 | 3.83 | |
| Palo Alto Networks Inc. | 0.31 | 0.36 | 0.34 | 0.31 | 0.44 | 0.57 | |
| Salesforce Inc. | 0.26 | 0.50 | 0.53 | 0.48 | 0.48 | 0.67 | |
| ServiceNow Inc. | — | 0.60 | 0.69 | 0.66 | 0.71 | 0.67 | |
| Synopsys Inc. | — | 0.80 | 1.53 | 0.53 | 0.56 | 0.65 | |
| Workday Inc. | 0.85 | 1.45 | 1.55 | 1.32 | 0.72 | 0.83 | |
| Cash Ratio, Sector | |||||||
| Software & Services | — | 0.62 | 0.58 | 0.78 | 0.82 | 1.12 | |
| Cash Ratio, Industry | |||||||
| Information Technology | — | 0.64 | 0.57 | 0.71 | 0.67 | 0.89 | |
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 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 7,200 ÷ 10,163 = 0.71
2 Click competitor name to see calculations.
The analysis of the liquidity position reveals a significant volatility in the cash ratio over the observed six-year period. While total cash assets have increased in absolute terms, the growth of current liabilities has historically outpaced these gains, leading to a general compression of the cash ratio until a partial recovery in the final period.
- Cash Ratio Trajectory
- The cash ratio experienced a marked decline from a peak of 1.46 in July 2021 to a low of 0.44 in July 2025. This downward trend indicates a diminishing capacity to cover short-term obligations using only the most liquid assets. However, a corrective shift occurred in July 2026, where the ratio rose to 0.71, suggesting an improvement in immediate liquidity.
- Cash Asset Growth
- Total cash assets demonstrated a long-term upward trend, growing from 3,870 million US$ in 2021 to 7,200 million US$ in 2026. The most substantial increase occurred between July 2025 and July 2026, where assets grew by approximately 58%, contributing significantly to the recovery of the cash ratio in the final year.
- Current Liability Expansion
- A critical driver of the liquidity decline was the aggressive expansion of current liabilities. Liabilities remained relatively stable between 2021 and 2023 but spiked sharply starting in 2024, reaching 7,491 million US$ and peaking at 10,370 million US$ in 2025. This rapid accumulation of short-term obligations exerted downward pressure on the cash ratio, reducing the liquidity cushion to its lowest point in 2025.
- Liquidity Correlation
- The data indicates an inverse relationship between the scaling of short-term debt and the cash ratio from 2023 to 2025. The liquidity position only stabilized in 2026 when the growth rate of cash assets exceeded the movement in liabilities, which saw a slight reduction to 10,163 million US$.
AI Ask an analyst for more