Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Intuit Inc., profitability 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).
- Gross Profit Margin
- The gross profit margin exhibits a gradual decline from 82.8% in 2019 to 78.13% in 2023, followed by a slight recovery to 78.72% in 2024. This indicates a modest erosion in the company's core profitability at the gross level over the analyzed period, with a recent stabilization.
- Operating Profit Margin
- The operating profit margin shows variability with an initial increase from 27.33% in 2019 to 28.34% in 2020, followed by a continuous decrease to 20.2% by 2022. A moderate improvement occurs post-2022, reaching 22.29% in 2024. This pattern reflects fluctuations in operational efficiency or expenses impacting operating results.
- Net Profit Margin
- Net profit margin decreases from 22.95% in 2019 to 16.23% in 2022, then slightly improves to 18.19% in 2024. The downward trend through 2022 suggests increased costs, taxes, or other non-operating factors diminishing bottom-line profitability, with some recovery in recent years.
- Return on Equity (ROE)
- Return on equity experiences a marked decline from 41.53% in 2019 to a low of 12.57% in 2022, followed by a gradual recovery to 16.07% in 2024. This sharp contraction indicates reduced efficiency in generating profit from shareholders' equity, possibly due to lower earnings or changes in capital structure.
- Return on Assets (ROA)
- Return on assets similarly declines from 24.78% in 2019 to 7.45% in 2022, then improves modestly to 9.22% by 2024. The drop suggests diminished asset utilization effectiveness, with partial recovery in the latest periods indicating enhanced asset productivity or profitability.
Return on Sales
Return on Investment
Gross Profit Margin
Intuit Inc., gross profit margin 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) | |||||||
| Gross profit | 12,820) | 11,225) | 10,320) | 7,950) | 6,301) | 5,617) | |
| Net revenue | 16,285) | 14,368) | 12,726) | 9,633) | 7,679) | 6,784) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 78.72% | 78.13% | 81.09% | 82.53% | 82.05% | 82.80% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Accenture PLC | 32.61% | 32.34% | 31.99% | 32.38% | 31.53% | 30.81% | |
| Adobe Inc. | 89.04% | 87.87% | 87.70% | 88.18% | 86.62% | 85.03% | |
| Cadence Design Systems Inc. | 86.05% | 89.36% | 89.57% | 89.73% | 88.61% | — | |
| CrowdStrike Holdings Inc. | 75.27% | 73.17% | 73.60% | 73.75% | 70.58% | — | |
| Fair Isaac Corp. | 79.73% | 79.45% | 78.06% | 74.75% | 72.10% | 70.96% | |
| International Business Machines Corp. | 56.65% | 55.45% | 54.00% | 54.90% | 48.32% | — | |
| Microsoft Corp. | 69.76% | 68.92% | 68.40% | 68.93% | 67.78% | 65.90% | |
| Oracle Corp. | 71.41% | 72.85% | 79.08% | 80.59% | 79.68% | — | |
| Palantir Technologies Inc. | 80.25% | 80.62% | 78.56% | 77.99% | 67.74% | — | |
| Palo Alto Networks Inc. | 74.35% | 72.29% | 68.76% | 70.05% | 70.68% | 72.12% | |
| Salesforce Inc. | 75.50% | 73.34% | 73.48% | 74.41% | 75.23% | — | |
| ServiceNow Inc. | 79.18% | 78.59% | 78.29% | 77.05% | 78.16% | — | |
| Synopsys Inc. | 79.68% | 79.08% | 79.07% | 79.50% | 78.44% | 77.60% | |
| Workday Inc. | 75.60% | 72.41% | 72.21% | 72.25% | 70.63% | — | |
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
Gross profit margin = 100 × Gross profit ÷ Net revenue
= 100 × 12,820 ÷ 16,285 = 78.72%
2 Click competitor name to see calculations.
- Net Revenue
- The net revenue exhibited a consistent upward trajectory over the six-year period. It increased from $6,784 million in 2019 to $16,285 million in 2024, reflecting a substantial growth. The annual increments suggest a strong sales performance and expanding market presence, with growth accelerating notably in the latter years.
- Gross Profit
- Gross profit also displayed a steady increase in absolute terms, rising from $5,617 million in 2019 to $12,820 million in 2024. This growth corresponds with the increase in net revenue, indicating effective cost management and scaling benefits. The growth in gross profit aligns proportionally with net revenue, suggesting maintained operational efficiency over the period.
- Gross Profit Margin
- The gross profit margin demonstrated a slight declining trend from 82.8% in 2019 to a low of 78.13% in 2023, before a modest recovery to 78.72% in 2024. Although the margin remained relatively high, the reduction indicates increasing costs or pricing pressures relative to revenue. The margin contraction suggests that the cost of goods sold grew at a faster rate than revenue, potentially impacting profitability if the trend continues.
Operating Profit Margin
Intuit Inc., operating profit margin calculation, comparison to benchmarks
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income | 3,630) | 3,141) | 2,571) | 2,500) | 2,176) | 1,854) | |
| Net revenue | 16,285) | 14,368) | 12,726) | 9,633) | 7,679) | 6,784) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 22.29% | 21.86% | 20.20% | 25.95% | 28.34% | 27.33% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Accenture PLC | 14.79% | 13.74% | 15.21% | 15.08% | 14.69% | 14.59% | |
| Adobe Inc. | 31.35% | 34.26% | 34.64% | 36.76% | 32.93% | 29.25% | |
| Cadence Design Systems Inc. | 29.10% | 30.59% | 30.15% | 26.07% | 24.06% | — | |
| CrowdStrike Holdings Inc. | -0.07% | -8.48% | -9.82% | -10.58% | -30.34% | — | |
| Fair Isaac Corp. | 42.71% | 42.47% | 39.38% | 38.40% | 22.86% | 21.86% | |
| International Business Machines Corp. | 14.95% | 15.17% | 13.50% | 11.97% | 9.22% | — | |
| Microsoft Corp. | 44.64% | 41.77% | 42.06% | 41.59% | 37.03% | 34.14% | |
| Oracle Corp. | 28.99% | 26.21% | 25.74% | 37.58% | 35.57% | — | |
| Palantir Technologies Inc. | 10.83% | 5.39% | -8.46% | -26.66% | -107.41% | — | |
| Palo Alto Networks Inc. | 8.52% | 5.62% | -3.43% | -7.15% | -5.25% | -1.87% | |
| Salesforce Inc. | 14.38% | 3.29% | 2.07% | 2.14% | 1.74% | — | |
| ServiceNow Inc. | 12.42% | 8.49% | 4.90% | 4.36% | 4.40% | — | |
| Synopsys Inc. | 22.13% | 21.72% | 22.87% | 17.48% | 16.83% | 15.48% | |
| Workday Inc. | 2.52% | -3.57% | -2.27% | -5.76% | -13.85% | — | |
| Operating Profit Margin, Sector | |||||||
| Software & Services | 30.41% | 27.43% | 27.41% | 28.21% | 24.17% | — | |
| Operating Profit Margin, Industry | |||||||
| Information Technology | 26.62% | 24.49% | 26.43% | 26.73% | 22.69% | — | |
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
Operating profit margin = 100 × Operating income ÷ Net revenue
= 100 × 3,630 ÷ 16,285 = 22.29%
2 Click competitor name to see calculations.
- Net Revenue
- The net revenue shows a consistent upward trend over the six-year period, increasing from 6,784 million US dollars in 2019 to 16,285 million US dollars in 2024. This demonstrates a nearly 140% growth, indicating strong top-line expansion.
- Operating Income
- Operating income has also increased steadily, from 1,854 million US dollars in 2019 to 3,630 million US dollars in 2024. This represents a near doubling over the period, illustrating effective growth in the core profitability of operations alongside revenue increases.
- Operating Profit Margin
- The operating profit margin experienced slight fluctuations. It started at 27.33% in 2019, reaching a peak of 28.34% in 2020, then declined to a low of 20.2% in 2022. Following this dip, the margin recovered to 22.29% in 2024. Despite the decline during 2021 and 2022, the margin remained above 20%, indicating the company maintained reasonable cost control relative to revenue.
- Overall Trends and Insights
- The data highlights robust revenue and operating income growth over the entire period, suggesting successful business expansion and scalability. The temporary contraction in operating margin during the middle years could indicate increased operating expenses or strategic reinvestment. However, the subsequent margin improvement suggests these factors were managed effectively, resulting in enhanced profitability by 2024.
Net Profit Margin
Intuit Inc., net profit margin 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) | |
| Net revenue | 16,285) | 14,368) | 12,726) | 9,633) | 7,679) | 6,784) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 18.19% | 16.59% | 16.23% | 21.41% | 23.78% | 22.95% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Accenture PLC | 11.19% | 10.72% | 11.17% | 11.69% | 11.52% | 11.06% | |
| Adobe Inc. | 25.85% | 27.97% | 27.01% | 30.55% | 40.88% | 26.42% | |
| Cadence Design Systems Inc. | 22.74% | 25.46% | 23.84% | 23.29% | 22.02% | — | |
| CrowdStrike Holdings Inc. | 2.92% | -8.18% | -16.18% | -10.59% | -29.45% | — | |
| Fair Isaac Corp. | 29.86% | 28.37% | 27.12% | 29.78% | 18.26% | 16.56% | |
| International Business Machines Corp. | 9.60% | 12.13% | 2.71% | 10.01% | 7.59% | — | |
| Microsoft Corp. | 35.96% | 34.15% | 36.69% | 36.45% | 30.96% | 31.18% | |
| Oracle Corp. | 19.76% | 17.02% | 15.83% | 33.96% | 25.94% | — | |
| Palantir Technologies Inc. | 16.13% | 9.43% | -19.61% | -33.75% | -106.75% | — | |
| Palo Alto Networks Inc. | 32.11% | 6.38% | -4.85% | -11.72% | -7.83% | -2.82% | |
| Salesforce Inc. | 11.87% | 0.66% | 5.45% | 19.16% | 0.74% | — | |
| ServiceNow Inc. | 12.97% | 19.30% | 4.49% | 3.90% | 2.62% | — | |
| Synopsys Inc. | 36.94% | 21.05% | 19.38% | 18.02% | 18.03% | 15.84% | |
| Workday Inc. | 19.02% | -5.90% | 0.57% | -6.54% | -13.25% | — | |
| Net Profit Margin, Sector | |||||||
| Software & Services | 24.73% | 21.95% | 21.72% | 25.30% | 20.05% | — | |
| Net Profit Margin, Industry | |||||||
| Information Technology | 20.64% | 20.39% | 22.45% | 23.62% | 19.67% | — | |
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
Net profit margin = 100 × Net income ÷ Net revenue
= 100 × 2,963 ÷ 16,285 = 18.19%
2 Click competitor name to see calculations.
- Net Income
- The net income demonstrates a consistent upward trend over the analyzed period. Starting at $1,557 million in 2019, it increased steadily each year, reaching $2,963 million by 2024. This reflects a nearly doubling of net income within five years, indicating strong profitability growth.
- Net Revenue
- Net revenue shows significant growth across the six years, rising from $6,784 million in 2019 to $16,285 million in 2024. The increase is particularly marked between 2020 and 2022, with revenue climbing sharply, then continuing to grow at a somewhat moderated but still substantial pace thereafter. This suggests successful expansion and possibly diversification of revenue streams.
- Net Profit Margin
- The net profit margin exhibits some variability despite the growth in absolute profit and revenue. Initially, it increased slightly from 22.95% in 2019 to 23.78% in 2020, but then declined to a low of 16.23% in 2022. This dip indicates a period where costs or expenses grew faster than revenues or pricing pressures affected margins. After 2022, the margin shows modest recovery, rising to 18.19% by 2024, suggesting improvements in operational efficiency or pricing strategy.
- Overall Analysis
- The data reveals strong revenue and net income growth over the period, demonstrating effective business scaling and increased profitability in absolute terms. However, the observed decline and subsequent partial recovery in net profit margin indicate fluctuations in cost management or market conditions affecting profitability ratios. The improvement in the latest period may signal successful efforts to optimize expenses or enhance margin quality amidst expanding revenues.
Return on Equity (ROE)
Intuit Inc., ROE calculation, comparison to benchmarks
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 2,963) | 2,384) | 2,066) | 2,062) | 1,826) | 1,557) | |
| Stockholders’ equity | 18,436) | 17,269) | 16,441) | 9,869) | 5,106) | 3,749) | |
| Profitability Ratio | |||||||
| ROE1 | 16.07% | 13.81% | 12.57% | 20.89% | 35.76% | 41.53% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Accenture PLC | 25.68% | 26.75% | 31.11% | 30.25% | 30.05% | 33.17% | |
| Adobe Inc. | 39.42% | 32.86% | 33.85% | 32.59% | 39.66% | 28.03% | |
| Cadence Design Systems Inc. | 22.58% | 30.58% | 30.93% | 25.39% | 23.69% | — | |
| CrowdStrike Holdings Inc. | 3.88% | -12.52% | -22.89% | -10.64% | -19.10% | — | |
| Fair Isaac Corp. | — | — | — | — | 71.41% | 66.30% | |
| International Business Machines Corp. | 22.06% | 33.29% | 7.47% | 30.38% | 27.14% | — | |
| Microsoft Corp. | 32.83% | 35.09% | 43.68% | 43.15% | 37.43% | 38.35% | |
| Oracle Corp. | 120.26% | 792.45% | — | 262.43% | 83.94% | — | |
| Palantir Technologies Inc. | 9.24% | 6.04% | -14.57% | -22.71% | -76.61% | — | |
| Palo Alto Networks Inc. | 49.86% | 25.15% | -127.14% | -78.63% | -24.23% | -5.16% | |
| Salesforce Inc. | 6.93% | 0.36% | 2.48% | 9.81% | 0.37% | — | |
| ServiceNow Inc. | 14.83% | 22.69% | 6.46% | 6.22% | 4.18% | — | |
| Synopsys Inc. | 25.17% | 20.01% | 17.85% | 14.31% | 13.54% | 13.04% | |
| Workday Inc. | 17.09% | -6.57% | 0.65% | -8.62% | -19.33% | — | |
| ROE, Sector | |||||||
| Software & Services | 28.71% | 28.63% | 31.20% | 36.34% | 30.37% | — | |
| ROE, Industry | |||||||
| Information Technology | 29.37% | 32.00% | 39.15% | 42.48% | 35.75% | — | |
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
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 2,963 ÷ 18,436 = 16.07%
2 Click competitor name to see calculations.
- Net Income
- The net income of the company exhibited an overall upward trend across the observed periods. Starting at 1,557 million US dollars in the year ending July 31, 2019, net income increased steadily each year, reaching 2,963 million US dollars by July 31, 2024. This indicates consistent profitability growth, with the most significant increase occurring between 2023 and 2024.
- Stockholders' Equity
- Stockholders’ equity demonstrated substantial growth throughout the years under review. Beginning at 3,749 million US dollars in 2019, it more than quadrupled to 18,436 million US dollars by 2024. The largest incremental increases occurred between 2020 and 2022, during which equity nearly tripled from 5,106 million to 16,441 million US dollars. Growth continued at a slower pace post-2022 but remained positive.
- Return on Equity (ROE)
- ROE showed a declining trend from 2019 through 2022, dropping from 41.53% to 12.57%. This decline reflects that although net income rose, the equity base expanded at a faster rate, diluting the return generated on equity. From 2022 onwards, ROE stabilized with a moderate increase to 16.07% by 2024, suggesting improved efficiency in utilizing equity to generate profits in the most recent years.
- Overall Analysis
- The financial data reveals a company experiencing strong net income growth accompanied by a significant increase in shareholders’ equity. While this growth in equity has initially outpaced income growth, leading to a sharp decline in ROE, recent years show signs of recovery in profitability relative to equity. This pattern may reflect strategic investments or capital raises that expanded the equity base, with the company increasingly leveraging its equity more effectively in later periods. The upward trajectory in net income and equity, combined with the recent improvement in ROE, indicates underlying financial strength and potential for sustainable growth.
Return on Assets (ROA)
Intuit Inc., ROA 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) | |
| Total assets | 32,132) | 27,780) | 27,734) | 15,516) | 10,931) | 6,283) | |
| Profitability Ratio | |||||||
| ROA1 | 9.22% | 8.58% | 7.45% | 13.29% | 16.70% | 24.78% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Accenture PLC | 12.99% | 13.41% | 14.55% | 13.68% | 13.78% | 16.04% | |
| Adobe Inc. | 18.39% | 18.23% | 17.51% | 17.70% | 21.66% | 14.22% | |
| Cadence Design Systems Inc. | 11.76% | 18.36% | 16.53% | 15.87% | 14.95% | — | |
| CrowdStrike Holdings Inc. | 1.34% | -3.65% | -6.49% | -3.39% | -10.09% | — | |
| Fair Isaac Corp. | 29.85% | 27.26% | 25.90% | 25.01% | 14.72% | 13.40% | |
| International Business Machines Corp. | 4.39% | 5.55% | 1.29% | 4.35% | 3.58% | — | |
| Microsoft Corp. | 17.21% | 17.56% | 19.94% | 18.36% | 14.70% | 13.69% | |
| Oracle Corp. | 7.42% | 6.33% | 6.15% | 10.48% | 8.78% | — | |
| Palantir Technologies Inc. | 7.29% | 4.64% | -10.80% | -16.02% | -43.35% | — | |
| Palo Alto Networks Inc. | 12.89% | 3.03% | -2.18% | -4.87% | -2.95% | -1.24% | |
| Salesforce Inc. | 4.14% | 0.21% | 1.52% | 6.14% | 0.23% | — | |
| ServiceNow Inc. | 6.99% | 9.96% | 2.44% | 2.13% | 1.36% | — | |
| Synopsys Inc. | 17.31% | 11.90% | 10.45% | 8.66% | 8.27% | 8.31% | |
| Workday Inc. | 8.39% | -2.72% | 0.28% | -3.24% | -7.05% | — | |
| ROA, Sector | |||||||
| Software & Services | 12.19% | 11.21% | 11.41% | 12.29% | 9.68% | — | |
| ROA, Industry | |||||||
| Information Technology | 11.95% | 12.52% | 14.57% | 14.67% | 11.45% | — | |
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
ROA = 100 × Net income ÷ Total assets
= 100 × 2,963 ÷ 32,132 = 9.22%
2 Click competitor name to see calculations.
- Net Income
- The net income has shown a consistent upward trend over the six-year period. Starting at $1,557 million in 2019, it increased steadily each year, reaching $2,963 million by 2024. This represents a significant growth in profitability, with the most pronounced increments occurring between 2022 and 2024.
- Total Assets
- Total assets have expanded substantially from $6,283 million in 2019 to $32,132 million in 2024. The growth was particularly strong between 2020 and 2022, when assets nearly doubled, followed by a more moderate increase through 2024. The rapid asset growth indicates an aggressive expansion or investment strategy during this period.
- Return on Assets (ROA)
- ROA experienced a declining trend from 24.78% in 2019 to a low of 7.45% in 2022, reflecting a decrease in profitability relative to asset size. After 2022, ROA showed a modest recovery, rising to 9.22% by 2024. Despite the recovery, the ROA in 2024 remains significantly lower than in the initial years of the period analyzed.
- Overall Analysis
- While net income has increased substantially over the years, the return on assets has declined, indicating that the company's asset base has grown at a faster pace than its earnings. The decrease in ROA suggests diminishing efficiency in asset utilization during the period 2019 to 2022, with a partial improvement thereafter. The substantial growth in total assets suggests significant investment or acquisition activity, which may have contributed to the reduced asset efficiency but supported overall earnings growth.