Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Intuit Inc., solvency ratios
Based on: 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), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).
- Debt Ratios Trends
- The debt to equity ratio exhibited notable fluctuations over the analyzed period. It increased sharply from 0.12 in 2019 to 0.66 in 2020, indicating a significant rise in leverage relative to equity. Subsequently, it declined to 0.21 in 2021, then increased again to 0.42 in 2022. The ratio then gradually decreased to 0.35 in 2023 and 0.33 in 2024, suggesting a stabilization at moderate leverage levels. Including operating lease liabilities follows a similar pattern but with slightly higher values, reflecting the lease commitments' effect on overall liabilities.
- Debt to capital ratios followed a comparable trajectory, rising from 0.10 in 2019 to 0.40 in 2020, then declining to 0.17 in 2021 before moderately rising to 0.30 in 2022. Subsequent years show a gradual reduction to 0.25 in 2024. Adjusting for operating lease liabilities slightly increased the ratios but preserved the general trend.
- Debt to assets ratios mirrored the changes seen in debt to equity and capital ratios. Starting at a low 0.07 in 2019, the ratio peaked at 0.31 in 2020, then declined to 0.13 in 2021, increased again in 2022 to 0.25, and gradually decreased to 0.19 by 2024. Incorporating operating lease liabilities caused a modest increase in these figures but maintained the overall pattern.
- Financial Leverage
- Financial leverage exhibited some variability but remained within a moderate range. It rose from 1.68 in 2019 to 2.14 in 2020, then declined to 1.57 in 2021. The ratio increased slightly to 1.69 in 2022, decreased to 1.61 in 2023, then rose again to 1.74 in 2024. This suggests a fluctuating but generally stable use of debt relative to equity in capital structure.
- Interest and Fixed Charge Coverage Trends
- Interest coverage ratios indicate a significant deterioration in the company’s ability to cover interest expenses from earnings over the period. There was a strong coverage margin in 2019 (126.4), which increased further to 158 in 2020, indicating substantial earnings relative to interest obligations. However, this ratio sharply fell to 89.14 in 2021, then declined further to 32.38 in 2022 and dropped significantly to 13.05 in 2023, with a slight improvement to 15.67 in 2024. Despite the improvement, overall coverage remains much lower than in earlier years.
- Fixed charge coverage also demonstrates a declining trend from 34 in 2019 to 27.48 in 2020, then decreasing progressively through 25.58 in 2021, 14.67 in 2022, 9.03 in 2023, and a modest increase to 11.14 in 2024. This reflects a reduced ability to cover all fixed obligations, including interest and lease expenses, over time.
- Summary of Observations
- Overall, the company experienced increased leverage around 2020, likely driven by higher debt levels. Following this peak, leverage ratios moderated but did not return to pre-2020 levels, indicating a somewhat elevated use of debt. Financial leverage ratios showed moderate volatility but remained relatively stable over recent years.
- Coverage ratios reveal a significant decline in earnings’ ability to service interest and fixed charges after 2020. While there was some recovery toward 2024, coverage remains substantially weaker than in the earlier part of the period analyzed. This may suggest increased financial risk or reduced profitability impacting interest expense coverage.
Debt Ratios
Coverage Ratios
Debt to Equity
Intuit Inc., debt to equity calculation, comparison to benchmarks
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | 499) | —) | 499) | —) | 1,338) | 50) | |
| Long-term debt | 5,539) | 6,120) | 6,415) | 2,034) | 2,031) | 386) | |
| Total debt | 6,038) | 6,120) | 6,914) | 2,034) | 3,369) | 436) | |
| Stockholders’ equity | 18,436) | 17,269) | 16,441) | 9,869) | 5,106) | 3,749) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 0.33 | 0.35 | 0.42 | 0.21 | 0.66 | 0.12 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Accenture PLC | 0.04 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | 0.40 | 0.22 | 0.29 | 0.28 | 0.31 | 0.39 | |
| Cadence Design Systems Inc. | 0.53 | 0.19 | 0.27 | 0.13 | 0.14 | — | |
| CrowdStrike Holdings Inc. | 0.32 | 0.51 | 0.72 | 0.85 | 0.00 | — | |
| Fair Isaac Corp. | — | — | — | — | 2.54 | 2.87 | |
| International Business Machines Corp. | 2.01 | 2.51 | 2.32 | 2.74 | 2.99 | — | |
| Microsoft Corp. | 0.29 | 0.31 | 0.39 | 0.50 | 0.62 | 0.77 | |
| Oracle Corp. | 9.98 | 84.33 | — | 16.08 | 5.93 | — | |
| Palantir Technologies Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.13 | — | |
| Palo Alto Networks Inc. | 0.19 | 1.14 | 17.51 | 5.08 | 2.80 | 0.90 | |
| Salesforce Inc. | 0.17 | 0.20 | 0.19 | 0.07 | 0.09 | — | |
| ServiceNow Inc. | 0.15 | 0.20 | 0.30 | 0.43 | 0.58 | — | |
| Synopsys Inc. | 0.00 | 0.00 | 0.00 | 0.02 | 0.03 | 0.03 | |
| Workday Inc. | 0.37 | 0.53 | 0.41 | 0.55 | 0.51 | — | |
| Debt to Equity, Sector | |||||||
| Software & Services | 0.54 | 0.64 | 0.71 | 0.83 | 0.95 | — | |
| Debt to Equity, Industry | |||||||
| Information Technology | 0.61 | 0.66 | 0.71 | 0.83 | 0.97 | — | |
Based on: 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), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).
1 2024 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 6,038 ÷ 18,436 = 0.33
2 Click competitor name to see calculations.
- Total Debt
- There is a significant fluctuation in total debt over the analyzed periods. Initially, total debt was relatively low at 436 million USD in 2019, then rose sharply to 3,369 million USD in 2020. This was followed by a decrease to 2,034 million USD in 2021. A substantial increase occurred again in 2022, reaching its peak at 6,914 million USD. The subsequent years show a decline to 6,120 million USD in 2023 and further to 6,038 million USD in 2024, indicating a modest reduction in debt levels after the peak in 2022.
- Stockholders’ Equity
- Stockholders’ equity exhibits a consistent upward trend throughout the period. Starting at 3,749 million USD in 2019, it increased steadily each year, reaching 5,106 million in 2020, 9,869 million in 2021, then 16,441 million in 2022. The growth continued at a slower pace with 17,269 million in 2023 and 18,436 million in 2024. This trend reflects an overall strengthening of the company’s equity base over time.
- Debt to Equity Ratio
- The debt to equity ratio shows variation corresponding to the changes in total debt relative to equity. In 2019, the ratio was low at 0.12, indicating conservative leverage. It rose significantly to 0.66 in 2020, likely influenced by the spike in total debt. Subsequently, the ratio declined to 0.21 in 2021, showing reduced leverage. In 2022, it increased again to 0.42, reflecting the rise in total debt, then steadily decreased to 0.35 in 2023 and 0.33 in 2024. This pattern suggests an overall effort to manage leverage, reducing risk after periods of higher indebtedness.
Debt to Equity (including Operating Lease Liability)
Intuit Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | 499) | —) | 499) | —) | 1,338) | 50) | |
| Long-term debt | 5,539) | 6,120) | 6,415) | 2,034) | 2,031) | 386) | |
| Total debt | 6,038) | 6,120) | 6,914) | 2,034) | 3,369) | 436) | |
| Current portion of operating lease liabilities | 71) | 89) | 84) | 66) | 46) | —) | |
| Operating lease liabilities, excluding current portion | 458) | 480) | 542) | 380) | 221) | —) | |
| Total debt (including operating lease liability) | 6,567) | 6,689) | 7,540) | 2,480) | 3,636) | 436) | |
| Stockholders’ equity | 18,436) | 17,269) | 16,441) | 9,869) | 5,106) | 3,749) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 0.36 | 0.39 | 0.46 | 0.25 | 0.71 | 0.12 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | 0.15 | 0.12 | 0.15 | 0.18 | 0.21 | 0.00 | |
| Adobe Inc. | 0.43 | 0.25 | 0.33 | 0.32 | 0.35 | 0.39 | |
| Cadence Design Systems Inc. | 0.56 | 0.24 | 0.34 | 0.18 | 0.20 | — | |
| CrowdStrike Holdings Inc. | 0.34 | 0.54 | 0.76 | 0.89 | 0.00 | — | |
| Fair Isaac Corp. | — | — | — | — | 2.83 | 2.87 | |
| International Business Machines Corp. | 2.14 | 2.66 | 2.46 | 2.92 | 3.23 | — | |
| Microsoft Corp. | 0.36 | 0.39 | 0.47 | 0.58 | 0.69 | 0.84 | |
| Oracle Corp. | 10.85 | 88.84 | — | 16.61 | 6.10 | — | |
| Palantir Technologies Inc. | 0.05 | 0.07 | 0.10 | 0.11 | 0.30 | — | |
| Palo Alto Networks Inc. | 0.27 | 1.33 | 19.12 | 5.68 | 3.16 | 0.90 | |
| Salesforce Inc. | 0.23 | 0.25 | 0.25 | 0.15 | 0.18 | — | |
| ServiceNow Inc. | 0.24 | 0.30 | 0.44 | 0.60 | 0.75 | — | |
| Synopsys Inc. | 0.08 | 0.11 | 0.12 | 0.13 | 0.14 | 0.03 | |
| Workday Inc. | 0.41 | 0.58 | 0.46 | 0.68 | 0.63 | — | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Software & Services | 0.63 | 0.73 | 0.81 | 0.94 | 1.06 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.67 | 0.73 | 0.77 | 0.91 | 1.04 | — | |
Based on: 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), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).
1 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 6,567 ÷ 18,436 = 0.36
2 Click competitor name to see calculations.
- Total debt (including operating lease liability)
- The total debt experienced a significant increase from US$436 million in 2019 to a peak of US$7,540 million in 2022. After 2022, the debt level showed a declining trend, decreasing to US$6,689 million in 2023 and further to US$6,567 million in 2024.
- Stockholders’ equity
- Stockholders' equity demonstrated steady and strong growth throughout the period. It increased from US$3,749 million in 2019 to US$18,436 million by 2024, with consistent yearly increases, notably doubling between 2020 and 2021, and continuing its upward trajectory through 2024.
- Debt to equity (including operating lease liability)
- The debt to equity ratio rose sharply from 0.12 in 2019 to 0.71 in 2020, largely driven by the substantial debt increase in that year. Subsequently, the ratio decreased to 0.25 in 2021, then increased again to 0.46 in 2022. From 2022 onwards, a steady reduction is observed, with the ratio falling to 0.39 in 2023 and 0.36 in 2024, suggesting an improvement in capital structure and lower relative leverage over the last two years.
Debt to Capital
Intuit Inc., debt to capital calculation, comparison to benchmarks
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | 499) | —) | 499) | —) | 1,338) | 50) | |
| Long-term debt | 5,539) | 6,120) | 6,415) | 2,034) | 2,031) | 386) | |
| Total debt | 6,038) | 6,120) | 6,914) | 2,034) | 3,369) | 436) | |
| Stockholders’ equity | 18,436) | 17,269) | 16,441) | 9,869) | 5,106) | 3,749) | |
| Total capital | 24,474) | 23,389) | 23,355) | 11,903) | 8,475) | 4,185) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.25 | 0.26 | 0.30 | 0.17 | 0.40 | 0.10 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Accenture PLC | 0.03 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | 0.29 | 0.18 | 0.23 | 0.22 | 0.24 | 0.28 | |
| Cadence Design Systems Inc. | 0.35 | 0.16 | 0.21 | 0.11 | 0.12 | — | |
| CrowdStrike Holdings Inc. | 0.24 | 0.34 | 0.42 | 0.46 | 0.00 | — | |
| Fair Isaac Corp. | 1.77 | 1.59 | 1.76 | 1.10 | 0.72 | 0.74 | |
| International Business Machines Corp. | 0.67 | 0.72 | 0.70 | 0.73 | 0.75 | — | |
| Microsoft Corp. | 0.23 | 0.24 | 0.28 | 0.33 | 0.38 | 0.43 | |
| Oracle Corp. | 0.91 | 0.99 | 1.09 | 0.94 | 0.86 | — | |
| Palantir Technologies Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.12 | — | |
| Palo Alto Networks Inc. | 0.16 | 0.53 | 0.95 | 0.84 | 0.74 | 0.47 | |
| Salesforce Inc. | 0.15 | 0.16 | 0.16 | 0.06 | 0.08 | — | |
| ServiceNow Inc. | 0.13 | 0.16 | 0.23 | 0.30 | 0.37 | — | |
| Synopsys Inc. | 0.00 | 0.00 | 0.00 | 0.02 | 0.03 | 0.03 | |
| Workday Inc. | 0.27 | 0.35 | 0.29 | 0.35 | 0.34 | — | |
| Debt to Capital, Sector | |||||||
| Software & Services | 0.35 | 0.39 | 0.42 | 0.45 | 0.49 | — | |
| Debt to Capital, Industry | |||||||
| Information Technology | 0.38 | 0.40 | 0.41 | 0.45 | 0.49 | — | |
Based on: 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), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).
1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 6,038 ÷ 24,474 = 0.25
2 Click competitor name to see calculations.
- Total Debt
- The total debt experienced a significant increase from 436 million USD in 2019 to 3,369 million USD in 2020. Following this spike, it declined to 2,034 million USD in 2021, then rose sharply again to 6,914 million USD in 2022. In the subsequent years, total debt showed a moderate decrease, settling at 6,120 million USD in 2023 and slightly further down to 6,038 million USD in 2024.
- Total Capital
- Total capital demonstrated consistent growth over the entire period, increasing from 4,185 million USD in 2019 to 24,474 million USD in 2024. Notably, the growth rate accelerated particularly between 2021 and 2022, when capital nearly doubled, before stabilizing with smaller increments in the years following.
- Debt to Capital Ratio
- The debt to capital ratio fluctuated in accordance with changes in total debt and capital. In 2019, it was low at 0.1, then surged to 0.4 in 2020 due to the steep rise in debt. The ratio subsequently declined to 0.17 in 2021 as total capital increased and debt decreased. It increased again to 0.3 in 2022 correlating to the jump in debt, then gradually decreased to 0.26 in 2023 and 0.25 in 2024, indicating a relative reduction in leverage as capital continued to grow.
Debt to Capital (including Operating Lease Liability)
Intuit Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | 499) | —) | 499) | —) | 1,338) | 50) | |
| Long-term debt | 5,539) | 6,120) | 6,415) | 2,034) | 2,031) | 386) | |
| Total debt | 6,038) | 6,120) | 6,914) | 2,034) | 3,369) | 436) | |
| Current portion of operating lease liabilities | 71) | 89) | 84) | 66) | 46) | —) | |
| Operating lease liabilities, excluding current portion | 458) | 480) | 542) | 380) | 221) | —) | |
| Total debt (including operating lease liability) | 6,567) | 6,689) | 7,540) | 2,480) | 3,636) | 436) | |
| Stockholders’ equity | 18,436) | 17,269) | 16,441) | 9,869) | 5,106) | 3,749) | |
| Total capital (including operating lease liability) | 25,003) | 23,958) | 23,981) | 12,349) | 8,742) | 4,185) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.26 | 0.28 | 0.31 | 0.20 | 0.42 | 0.10 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | 0.13 | 0.11 | 0.13 | 0.15 | 0.17 | 0.00 | |
| Adobe Inc. | 0.30 | 0.20 | 0.25 | 0.24 | 0.26 | 0.28 | |
| Cadence Design Systems Inc. | 0.36 | 0.19 | 0.25 | 0.15 | 0.17 | — | |
| CrowdStrike Holdings Inc. | 0.26 | 0.35 | 0.43 | 0.47 | 0.00 | — | |
| Fair Isaac Corp. | 1.75 | 1.57 | 1.72 | 1.09 | 0.74 | 0.74 | |
| International Business Machines Corp. | 0.68 | 0.73 | 0.71 | 0.74 | 0.76 | — | |
| Microsoft Corp. | 0.27 | 0.28 | 0.32 | 0.37 | 0.41 | 0.46 | |
| Oracle Corp. | 0.92 | 0.99 | 1.08 | 0.94 | 0.86 | — | |
| Palantir Technologies Inc. | 0.05 | 0.06 | 0.09 | 0.10 | 0.23 | — | |
| Palo Alto Networks Inc. | 0.21 | 0.57 | 0.95 | 0.85 | 0.76 | 0.47 | |
| Salesforce Inc. | 0.19 | 0.20 | 0.20 | 0.13 | 0.16 | — | |
| ServiceNow Inc. | 0.19 | 0.23 | 0.31 | 0.37 | 0.43 | — | |
| Synopsys Inc. | 0.07 | 0.10 | 0.11 | 0.11 | 0.12 | 0.03 | |
| Workday Inc. | 0.29 | 0.37 | 0.32 | 0.41 | 0.39 | — | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Software & Services | 0.39 | 0.42 | 0.45 | 0.48 | 0.51 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.40 | 0.42 | 0.44 | 0.48 | 0.51 | — | |
Based on: 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), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).
1 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 6,567 ÷ 25,003 = 0.26
2 Click competitor name to see calculations.
- Total debt (including operating lease liability)
- The total debt experienced significant fluctuations over the examined periods. Initially, the debt was relatively low at 436 million USD in 2019, followed by a steep increase to 3,636 million USD in 2020. Subsequently, the total debt declined to 2,480 million USD in 2021 but then surged again, reaching a peak of 7,540 million USD in 2022. From 2022 onwards, the total debt showed a downward trend, decreasing to 6,689 million USD in 2023 and further to 6,567 million USD in 2024.
- Total capital (including operating lease liability)
- Total capital demonstrated a consistent upward trend throughout the periods. Starting at 4,185 million USD in 2019, the capital more than doubled by 2020 to 8,742 million USD. This growth continued steadily, reaching 12,349 million USD in 2021 and then seeing a pronounced increase to 23,981 million USD in 2022. From 2022 to 2023, total capital remained relatively stable at approximately 23,958 million USD and increased moderately to 25,003 million USD in 2024.
- Debt to capital (including operating lease liability)
- The debt to capital ratio reflected notable volatility. It started low at 0.10 in 2019, then rose sharply to 0.42 in 2020, indicating a substantial increase in leverage relative to capital. In 2021, the ratio decreased to 0.20, suggesting an improved capital structure. The ratio increased again to 0.31 in 2022, before gradually declining to 0.28 in 2023 and further to 0.26 in 2024. Overall, the ratio indicates that despite increases in debt, capital growth has maintained a relatively moderate leverage position in recent years.
Debt to Assets
Intuit Inc., debt to assets calculation, comparison to benchmarks
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | 499) | —) | 499) | —) | 1,338) | 50) | |
| Long-term debt | 5,539) | 6,120) | 6,415) | 2,034) | 2,031) | 386) | |
| Total debt | 6,038) | 6,120) | 6,914) | 2,034) | 3,369) | 436) | |
| Total assets | 32,132) | 27,780) | 27,734) | 15,516) | 10,931) | 6,283) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.19 | 0.22 | 0.25 | 0.13 | 0.31 | 0.07 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Accenture PLC | 0.02 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | 0.19 | 0.12 | 0.15 | 0.15 | 0.17 | 0.20 | |
| Cadence Design Systems Inc. | 0.28 | 0.11 | 0.15 | 0.08 | 0.09 | — | |
| CrowdStrike Holdings Inc. | 0.11 | 0.15 | 0.20 | 0.27 | 0.00 | — | |
| Fair Isaac Corp. | 1.29 | 1.18 | 1.29 | 0.80 | 0.52 | 0.58 | |
| International Business Machines Corp. | 0.40 | 0.42 | 0.40 | 0.39 | 0.39 | — | |
| Microsoft Corp. | 0.15 | 0.16 | 0.18 | 0.21 | 0.24 | 0.27 | |
| Oracle Corp. | 0.62 | 0.67 | 0.69 | 0.64 | 0.62 | — | |
| Palantir Technologies Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.07 | — | |
| Palo Alto Networks Inc. | 0.05 | 0.14 | 0.30 | 0.31 | 0.34 | 0.22 | |
| Salesforce Inc. | 0.10 | 0.12 | 0.12 | 0.04 | 0.06 | — | |
| ServiceNow Inc. | 0.07 | 0.09 | 0.11 | 0.15 | 0.19 | — | |
| Synopsys Inc. | 0.00 | 0.00 | 0.00 | 0.01 | 0.02 | 0.02 | |
| Workday Inc. | 0.18 | 0.22 | 0.18 | 0.21 | 0.19 | — | |
| Debt to Assets, Sector | |||||||
| Software & Services | 0.23 | 0.25 | 0.26 | 0.28 | 0.30 | — | |
| Debt to Assets, Industry | |||||||
| Information Technology | 0.25 | 0.26 | 0.26 | 0.29 | 0.31 | — | |
Based on: 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), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).
1 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= 6,038 ÷ 32,132 = 0.19
2 Click competitor name to see calculations.
- Total debt
-
Total debt experienced significant fluctuations over the analyzed period. Starting at US$436 million in 2019, the debt surged abruptly to US$3,369 million in 2020, followed by a decrease to US$2,034 million in 2021. This was succeeded by another sharp increase, peaking at US$6,914 million in 2022. Subsequently, there was a downward trend with debt levels declining to US$6,120 million in 2023 and further to US$6,038 million in 2024. Overall, the debt profile reflects periods of substantial borrowing followed by some deleveraging, though the levels in the last three reported years remained relatively elevated compared to the initial year.
- Total assets
-
Total assets showed a consistent and notable upward trend throughout the period. Beginning at US$6,283 million in 2019, total assets grew substantially year over year, more than doubling by 2020 to US$10,931 million. The growth continued steadily, reaching US$15,516 million in 2021 and accelerating further to US$27,734 million in 2022. Asset levels remained stable between 2022 and 2023 but increased again in 2024 to US$32,132 million. This trajectory indicates expanding asset base, reflecting ongoing investment or acquisition activities and likely supporting growth strategies.
- Debt to assets ratio
-
The debt to assets ratio exhibited variability corresponding with changes in debt and asset levels. The ratio began at a low 0.07 in 2019, indicating minimal leverage relative to assets. It spiked significantly to 0.31 in 2020, mirroring the surge in debt relative to growing assets. In 2021, the ratio dropped to 0.13 as debt decreased and assets increased. The ratio rose again to 0.25 in 2022, consistent with the peak debt level that year. Subsequent declines to 0.22 in 2023 and further to 0.19 in 2024 reflect a modest deleveraging trend and continued asset growth. Overall, the leverage ratio shows a pattern of fluctuating borrowing intensity, but maintains levels below 0.31, indicating a moderate debt burden relative to asset base.
Debt to Assets (including Operating Lease Liability)
Intuit Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | 499) | —) | 499) | —) | 1,338) | 50) | |
| Long-term debt | 5,539) | 6,120) | 6,415) | 2,034) | 2,031) | 386) | |
| Total debt | 6,038) | 6,120) | 6,914) | 2,034) | 3,369) | 436) | |
| Current portion of operating lease liabilities | 71) | 89) | 84) | 66) | 46) | —) | |
| Operating lease liabilities, excluding current portion | 458) | 480) | 542) | 380) | 221) | —) | |
| Total debt (including operating lease liability) | 6,567) | 6,689) | 7,540) | 2,480) | 3,636) | 436) | |
| Total assets | 32,132) | 27,780) | 27,734) | 15,516) | 10,931) | 6,283) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.20 | 0.24 | 0.27 | 0.16 | 0.33 | 0.07 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | 0.07 | 0.06 | 0.07 | 0.08 | 0.09 | 0.00 | |
| Adobe Inc. | 0.20 | 0.14 | 0.17 | 0.17 | 0.19 | 0.20 | |
| Cadence Design Systems Inc. | 0.29 | 0.14 | 0.18 | 0.11 | 0.13 | — | |
| CrowdStrike Holdings Inc. | 0.12 | 0.16 | 0.21 | 0.29 | 0.00 | — | |
| Fair Isaac Corp. | 1.31 | 1.21 | 1.33 | 0.85 | 0.58 | 0.58 | |
| International Business Machines Corp. | 0.43 | 0.44 | 0.42 | 0.42 | 0.43 | — | |
| Microsoft Corp. | 0.19 | 0.19 | 0.21 | 0.25 | 0.27 | 0.30 | |
| Oracle Corp. | 0.67 | 0.71 | 0.73 | 0.66 | 0.64 | — | |
| Palantir Technologies Inc. | 0.04 | 0.05 | 0.07 | 0.08 | 0.17 | — | |
| Palo Alto Networks Inc. | 0.07 | 0.16 | 0.33 | 0.35 | 0.38 | 0.22 | |
| Salesforce Inc. | 0.14 | 0.15 | 0.15 | 0.10 | 0.11 | — | |
| ServiceNow Inc. | 0.11 | 0.13 | 0.17 | 0.21 | 0.24 | — | |
| Synopsys Inc. | 0.05 | 0.07 | 0.07 | 0.08 | 0.08 | 0.02 | |
| Workday Inc. | 0.20 | 0.24 | 0.20 | 0.26 | 0.23 | — | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Software & Services | 0.27 | 0.29 | 0.30 | 0.32 | 0.34 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.27 | 0.28 | 0.29 | 0.31 | 0.33 | — | |
Based on: 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), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).
1 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 6,567 ÷ 32,132 = 0.20
2 Click competitor name to see calculations.
- Total Debt (Including Operating Lease Liability)
- The total debt exhibited significant fluctuations during the observed period. Beginning at $436 million in 2019, it sharply increased to $3,636 million in 2020. Subsequently, there was a decline to $2,480 million in 2021, followed by a substantial rise to $7,540 million in 2022. In the following years, debt decreased to $6,689 million in 2023 and slightly further to $6,567 million in 2024. This pattern suggests considerable variability in the company's leverage strategy or financing activities.
- Total Assets
- Total assets showed a consistent and strong upward trend throughout the period. Starting from $6,283 million in 2019, assets increased to $10,931 million in 2020, followed by continuous growth each year, reaching $32,132 million by 2024. This steady asset growth indicates expansion and possibly increased investments or acquisitions, reflecting a growing asset base over time.
- Debt to Assets Ratio (Including Operating Lease Liability)
- The debt to assets ratio experienced notable variations consistent with the movements observed in debt and assets. The ratio rose sharply from 0.07 in 2019 to 0.33 in 2020, indicating a higher leverage position relative to assets at that time. It then decreased to 0.16 in 2021, increased again to 0.27 in 2022, and subsequently declined to 0.24 in 2023 and 0.20 in 2024. Overall, despite fluctuations, the ratio remained below 0.33, suggesting moderate leverage with a tendency towards gradual deleveraging in later years.
Financial Leverage
Intuit Inc., financial leverage calculation, comparison to benchmarks
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Total assets | 32,132) | 27,780) | 27,734) | 15,516) | 10,931) | 6,283) | |
| Stockholders’ equity | 18,436) | 17,269) | 16,441) | 9,869) | 5,106) | 3,749) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 1.74 | 1.61 | 1.69 | 1.57 | 2.14 | 1.68 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Accenture PLC | 1.98 | 1.99 | 2.14 | 2.21 | 2.18 | 2.07 | |
| Adobe Inc. | 2.14 | 1.80 | 1.93 | 1.84 | 1.83 | 1.97 | |
| Cadence Design Systems Inc. | 1.92 | 1.67 | 1.87 | 1.60 | 1.58 | — | |
| CrowdStrike Holdings Inc. | 2.88 | 3.43 | 3.53 | 3.14 | 1.89 | — | |
| Fair Isaac Corp. | — | — | — | — | 4.85 | 4.95 | |
| International Business Machines Corp. | 5.02 | 6.00 | 5.80 | 6.98 | 7.57 | — | |
| Microsoft Corp. | 1.91 | 2.00 | 2.19 | 2.35 | 2.55 | 2.80 | |
| Oracle Corp. | 16.20 | 125.24 | — | 25.03 | 9.56 | — | |
| Palantir Technologies Inc. | 1.27 | 1.30 | 1.35 | 1.42 | 1.77 | — | |
| Palo Alto Networks Inc. | 3.87 | 8.29 | 58.35 | 16.14 | 8.23 | 4.16 | |
| Salesforce Inc. | 1.67 | 1.69 | 1.64 | 1.60 | 1.63 | — | |
| ServiceNow Inc. | 2.12 | 2.28 | 2.64 | 2.92 | 3.07 | — | |
| Synopsys Inc. | 1.45 | 1.68 | 1.71 | 1.65 | 1.64 | 1.57 | |
| Workday Inc. | 2.04 | 2.41 | 2.31 | 2.66 | 2.74 | — | |
| Financial Leverage, Sector | |||||||
| Software & Services | 2.36 | 2.55 | 2.73 | 2.96 | 3.14 | — | |
| Financial Leverage, Industry | |||||||
| Information Technology | 2.46 | 2.56 | 2.69 | 2.90 | 3.12 | — | |
Based on: 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), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).
1 2024 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 32,132 ÷ 18,436 = 1.74
2 Click competitor name to see calculations.
The financial data reveals significant growth and changes over the analyzed periods. Key financial metrics demonstrate notable trends in asset expansion, equity development, and financial leverage fluctuations.
- Total Assets
- Total assets increased substantially from US$6,283 million in 2019 to US$32,132 million in 2024, representing more than a fivefold growth. The most rapid increments occurred between 2020 and 2022, with assets nearly doubling from US$10,931 million in 2020 to US$27,734 million in 2022. After this sharp rise, asset growth slowed modestly but remained positive through to 2024.
- Stockholders’ Equity
- Stockholders' equity showed a consistent and strong upward trajectory, growing from US$3,749 million in 2019 to US$18,436 million in 2024. This increase was particularly pronounced between 2020 and 2022, where equity surged by over threefold from US$5,106 million to US$16,441 million. The growth trend persisted through 2024, albeit at a slightly diminished pace.
- Financial Leverage
- The financial leverage ratio displayed some volatility but generally remained within a moderate range. It increased from 1.68 in 2019 to a peak of 2.14 in 2020, indicating a higher reliance on debt relative to equity during that year. Subsequently, leverage dropped sharply to 1.57 by 2021, suggesting a reduction in leverage or an increase in equity relative to debt. From 2022 to 2024, the ratio exhibited a gradual upward trend again, ending at 1.74, which reflects a balanced but slightly increased use of leverage compared to earlier years.
In summary, the company experienced robust asset and equity growth over the period, with an initial peak in leverage during 2020 followed by a reduction and subsequent stabilization. These patterns indicate expanding financial resources and a measured approach to leveraging capital structure.
Interest Coverage
Intuit Inc., interest coverage calculation, comparison to benchmarks
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 2,963) | 2,384) | 2,066) | 2,062) | 1,826) | 1,557) | |
| Add: Income tax expense | 587) | 605) | 476) | 494) | 372) | 324) | |
| Add: Interest expense | 242) | 248) | 81) | 29) | 14) | 15) | |
| Earnings before interest and tax (EBIT) | 3,792) | 3,237) | 2,623) | 2,585) | 2,212) | 1,896) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 15.67 | 13.05 | 32.38 | 89.14 | 158.00 | 126.40 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Accenture PLC | 165.48 | 193.31 | 195.34 | 131.46 | 205.84 | 273.26 | |
| Adobe Inc. | 42.01 | 61.17 | 54.64 | 51.49 | 37.00 | 21.38 | |
| Cadence Design Systems Inc. | 19.37 | 36.43 | 46.58 | 46.26 | 31.50 | — | |
| CrowdStrike Holdings Inc. | 5.77 | -5.31 | -5.34 | -55.36 | -315.25 | — | |
| Fair Isaac Corp. | 7.08 | 6.79 | 7.83 | 12.80 | 7.09 | 6.44 | |
| International Business Machines Corp. | 4.40 | 6.42 | 1.97 | 5.20 | 4.62 | — | |
| Microsoft Corp. | 37.72 | 46.38 | 41.58 | 31.31 | 21.47 | 17.27 | |
| Oracle Corp. | 4.39 | 3.65 | 3.84 | 6.28 | 7.13 | — | |
| Palantir Technologies Inc. | — | 69.33 | -87.97 | -133.20 | -82.39 | — | |
| Palo Alto Networks Inc. | 120.07 | 21.82 | -6.56 | -1.85 | -1.61 | 0.11 | |
| Salesforce Inc. | 18.49 | 3.20 | 7.93 | 21.49 | 6.43 | — | |
| ServiceNow Inc. | 76.57 | 43.00 | 15.78 | 9.89 | 5.56 | — | |
| Synopsys Inc. | 44.06 | 1,106.08 | 657.96 | 240.38 | 125.16 | 47.79 | |
| Workday Inc. | 4.12 | -1.54 | 1.97 | -3.00 | -7.22 | — | |
| Interest Coverage, Sector | |||||||
| Software & Services | 17.98 | 17.22 | 18.09 | 17.35 | 13.97 | — | |
| Interest Coverage, Industry | |||||||
| Information Technology | 19.55 | 17.69 | 22.65 | 19.92 | 14.14 | — | |
Based on: 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), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).
1 2024 Calculation
Interest coverage = EBIT ÷ Interest expense
= 3,792 ÷ 242 = 15.67
2 Click competitor name to see calculations.
- Earnings before Interest and Tax (EBIT)
- The EBIT shows a consistent upward trend from 2019 to 2024. It increased from $1,896 million in 2019 to $3,792 million in 2024, more than doubling over the six-year period. Growth appears steady, with notable increments particularly between 2022 and 2024, indicating improved operational profitability.
- Interest Expense
- Interest expenses have risen significantly over the years. Starting at $15 million in 2019, the expense remained relatively low through 2020 but then escalated sharply, reaching $242 million by 2024. This suggests increased borrowing or higher debt servicing costs.
- Interest Coverage Ratio
- The interest coverage ratio, which measures the ability to cover interest expenses with EBIT, declined markedly from a very strong position of 126.4 in 2019 down to a low of 13.05 in 2023, before slightly improving to 15.67 in 2024. Despite this decrease, the ratio remains above conventional safe thresholds, but the downward trend signals a deterioration in interest expense coverage due to rising interest costs.
- Overall Analysis
- The simultaneous increase in EBIT and interest expenses indicates that while operational profitability has improved, the cost of financing has increased disproportionately. The declining interest coverage ratio highlights a reduction in the margin of safety for covering interest obligations, which could impact financial stability if this trend continues. Monitoring of debt levels and interest expense management is recommended to sustain financial health.
Fixed Charge Coverage
Intuit Inc., fixed charge coverage calculation, comparison to benchmarks
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 2,963) | 2,384) | 2,066) | 2,062) | 1,826) | 1,557) | |
| Add: Income tax expense | 587) | 605) | 476) | 494) | 372) | 324) | |
| Add: Interest expense | 242) | 248) | 81) | 29) | 14) | 15) | |
| Earnings before interest and tax (EBIT) | 3,792) | 3,237) | 2,623) | 2,585) | 2,212) | 1,896) | |
| Add: Operating lease cost | 108) | 124) | 105) | 75) | 69) | 42) | |
| Earnings before fixed charges and tax | 3,900) | 3,361) | 2,728) | 2,660) | 2,281) | 1,938) | |
| Interest expense | 242) | 248) | 81) | 29) | 14) | 15) | |
| Operating lease cost | 108) | 124) | 105) | 75) | 69) | 42) | |
| Fixed charges | 350) | 372) | 186) | 104) | 83) | 57) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 11.14 | 9.03 | 14.67 | 25.58 | 27.48 | 34.00 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Accenture PLC | 13.46 | 10.98 | 12.25 | 10.41 | 9.66 | 10.07 | |
| Adobe Inc. | 26.20 | 30.56 | 26.79 | 25.59 | 18.77 | 10.78 | |
| Cadence Design Systems Inc. | 11.13 | 14.79 | 15.50 | 13.77 | 11.46 | — | |
| CrowdStrike Holdings Inc. | 3.98 | -3.39 | -3.39 | -6.40 | -12.01 | — | |
| Fair Isaac Corp. | 6.35 | 5.94 | 6.39 | 8.93 | 4.91 | 4.52 | |
| International Business Machines Corp. | 3.13 | 4.32 | 1.52 | 3.13 | 2.62 | — | |
| Microsoft Corp. | 17.61 | 19.44 | 19.50 | 16.90 | 12.44 | 10.94 | |
| Oracle Corp. | 3.55 | 3.12 | 3.22 | 5.17 | 5.68 | — | |
| Palantir Technologies Inc. | 9.48 | 4.62 | -5.06 | -7.89 | -16.41 | — | |
| Palo Alto Networks Inc. | 12.78 | 7.20 | -1.18 | -1.09 | -0.52 | 0.41 | |
| Salesforce Inc. | 4.74 | 1.51 | 2.18 | 2.92 | 1.68 | — | |
| ServiceNow Inc. | 12.36 | 7.59 | 3.87 | 2.95 | 2.29 | — | |
| Synopsys Inc. | 12.88 | 14.38 | 12.91 | 9.29 | 7.46 | 6.30 | |
| Workday Inc. | 2.60 | -0.29 | 1.15 | -0.69 | -2.35 | — | |
| Fixed Charge Coverage, Sector | |||||||
| Software & Services | 9.99 | 9.48 | 9.44 | 9.23 | 7.43 | — | |
| Fixed Charge Coverage, Industry | |||||||
| Information Technology | 12.44 | 11.34 | 13.44 | 12.21 | 9.04 | — | |
Based on: 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), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).
1 2024 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 3,900 ÷ 350 = 11.14
2 Click competitor name to see calculations.
- Earnings before fixed charges and tax
- The earnings before fixed charges and tax exhibited a consistent upward trend from 2019 through 2024. Starting at 1,938 million US dollars in 2019, earnings increased each year, reaching 3,900 million US dollars by 2024. The growth reflects a strong and sustained improvement in operational profitability over this period, with a notable acceleration in the increments observed from 2021 onwards.
- Fixed charges
- Fixed charges also increased significantly over the six-year period, beginning at 57 million US dollars in 2019 and peaking at 372 million US dollars in 2023. However, there was a slight reduction in 2024 to 350 million US dollars. This pattern indicates an increasing financial obligation or interest expense burden on the company, particularly marked by the sharp rise between 2021 and 2023.
- Fixed charge coverage ratio
- The fixed charge coverage ratio demonstrated a declining trend from 2019 to 2023, decreasing from 34.00 in 2019 to 9.03 in 2023. This decline suggests that although earnings increased, fixed charges grew at a faster rate, thereby reducing the cushion available to cover fixed charges. There was a modest recovery in 2024, with the ratio improving to 11.14, indicating a slight enhancement in the company's ability to cover its fixed charges relative to the previous year.
- Overall Analysis
- Collectively, the data portrays a situation where earnings have substantially grown, which reflects strong operational performance. However, fixed charges have also escalated sharply, which has pressured the fixed charge coverage ratio downward. Despite a minor improvement in the most recent year, the declining coverage ratio over the period highlights a potential risk factor related to rising financial fixed costs. The company maintains a sufficient margin to cover fixed charges, but the trend suggests close monitoring of fixed obligations in relation to earnings growth is warranted.