Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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Profitability Ratios (Summary)
Intuit Inc., profitability ratios
Based on: 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), 10-K (reporting date: 2020-07-31).
- Gross Profit Margin
- The gross profit margin demonstrates a declining trend from 82.05% in 2020 to a low point of 78.13% in 2023, followed by a slight recovery reaching 79.57% in 2025. Overall, the margin experienced a moderate decrease, indicating some pressure on the cost of goods sold or pricing power over the period.
- Operating Profit Margin
- The operating profit margin shows a significant decline from 28.34% in 2020 to 20.2% in 2022. After this trough, there is a gradual improvement, rising to 26.14% by 2025. This pattern suggests that operating efficiency or cost management initially worsened but improved in recent years, possibly due to operational adjustments or expense control.
- Net Profit Margin
- The net profit margin decreases from 23.78% in 2020 to 16.23% in 2022, mirroring the dip in operating profitability. Subsequently, it recovers steadily to 20.55% in 2025, indicating improved overall profitability likely driven by better cost control or tax and interest expense management.
- Return on Equity (ROE)
- ROE exhibits a marked decline from 35.76% in 2020 to 12.57% in 2022, reflecting diminished returns on shareholder investments. A gradual recovery is observed thereafter, reaching 19.63% in 2025, suggesting enhanced capital efficiency and profitability as the company regains momentum.
- Return on Assets (ROA)
- ROA follows a similar declining pattern, dropping from 16.7% in 2020 to 7.45% in 2022. It then improves steadily to 10.47% in 2025. This trend indicates a reduced ability to generate earnings from assets during the early period, with progressive recovery in asset utilization efficiency in later years.
Return on Sales
Return on Investment
Gross Profit Margin
Intuit Inc., gross profit margin calculation, comparison to benchmarks
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Gross profit | |||||||
| Net revenue | |||||||
| Profitability Ratio | |||||||
| Gross profit margin1 | |||||||
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Datadog Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Microsoft Corp. | |||||||
| Oracle Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Workday Inc. | |||||||
Based on: 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), 10-K (reporting date: 2020-07-31).
1 2025 Calculation
Gross profit margin = 100 × Gross profit ÷ Net revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
- Revenue Growth
- The company experienced a consistent upward trend in net revenue over the analyzed periods. Starting at $7,679 million in 2020, net revenue increased annually to reach $18,831 million by 2025, reflecting a strong growth trajectory.
- Gross Profit Increase
- Gross profit followed a similar positive trend, rising from $6,301 million in 2020 to $14,983 million in 2025. This increase in absolute gross profit aligns with the growth in net revenue and indicates expanding profitability in terms of production or service delivery efficiency.
- Gross Profit Margin Trends
- Despite rising revenues and gross profit, the gross profit margin exhibited some fluctuations. It started at 82.05% in 2020 and peaked slightly at 82.53% in 2021. Subsequently, there was a gradual decline to 78.13% in 2023, followed by a modest recovery, reaching 79.57% in 2025. This pattern suggests some variations in cost structure or pricing power that affected profitability relative to revenue.
- Overall Financial Performance
- The data reflects robust financial growth with strong increases in both net revenue and gross profit. The slight erosion and partial recovery in gross profit margin may warrant further analysis to understand cost pressures or operational changes impacting margin sustainability.
Operating Profit Margin
Intuit Inc., operating profit margin calculation, comparison to benchmarks
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income | |||||||
| Net revenue | |||||||
| Profitability Ratio | |||||||
| Operating profit margin1 | |||||||
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Datadog Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Microsoft Corp. | |||||||
| Oracle Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Workday Inc. | |||||||
| Operating Profit Margin, Sector | |||||||
| Software & Services | |||||||
| Operating Profit Margin, Industry | |||||||
| Information Technology | |||||||
Based on: 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), 10-K (reporting date: 2020-07-31).
1 2025 Calculation
Operating profit margin = 100 × Operating income ÷ Net revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
- Operating Income
- The operating income exhibits a consistent upward trajectory over the observed periods. It increased from 2,176 million USD in 2020 to 4,923 million USD in 2025. This nearly doubling of operating income over five years indicates significant growth in the company's profitability from core operations.
- Net Revenue
- Net revenue also demonstrates a strong positive trend, rising steadily from 7,679 million USD in 2020 to 18,831 million USD in 2025. This substantial increase reflects expanding business activities and possibly a growing market share or improved sales performance.
- Operating Profit Margin
- The operating profit margin shows some variability but remains generally high throughout the periods. Starting at 28.34% in 2020, it decreased to 20.2% in 2022, indicating margin compression during that time. However, it recovered to 26.14% by 2025, suggesting improved operational efficiency or favorable cost management that helped restore profitability levels.
- Overall Insights
- The financial data reflect robust growth in both revenue and operating income, underpinning the company's expanding scale and profitability. The temporary decline in operating margin during the mid-period may suggest increased costs or investments that impacted margins but were effectively managed in subsequent years to deliver better profitability ratios.
Net Profit Margin
Intuit Inc., net profit margin calculation, comparison to benchmarks
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | |||||||
| Net revenue | |||||||
| Profitability Ratio | |||||||
| Net profit margin1 | |||||||
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Datadog Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Microsoft Corp. | |||||||
| Oracle Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Workday Inc. | |||||||
| Net Profit Margin, Sector | |||||||
| Software & Services | |||||||
| Net Profit Margin, Industry | |||||||
| Information Technology | |||||||
Based on: 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), 10-K (reporting date: 2020-07-31).
1 2025 Calculation
Net profit margin = 100 × Net income ÷ Net revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income
- There is a consistent upward trend in net income over the given periods, increasing from 1,826 million US dollars in 2020 to a projected 3,869 million US dollars in 2025. The growth appears steady, with notable acceleration in the later years, particularly between 2023 and 2025.
- Net Revenue
- Net revenue demonstrates a strong and continuous increase throughout the timeline. Starting at 7,679 million US dollars in 2020, it rises each year to reach an estimated 18,831 million US dollars by 2025. The growth rate appears robust, with significant year-over-year increments especially evident from 2021 onwards.
- Net Profit Margin
- The net profit margin shows variability over the period. It starts relatively high at 23.78% in 2020 but decreases to its lowest point of 16.23% in 2022. Following this decline, there is a gradual recovery in profit margin, increasing to 20.55% by 2025. This suggests initial margin compression followed by improvement in profitability efficiency over the latter years.
- Overall Insights
- The company exhibits strong revenue growth paired with increasing net income, indicating effective scaling of operations. The decline and subsequent recovery in net profit margin may reflect changes in cost structures, investment in growth, or market conditions impacting profitability. The improving margin towards the end of the period suggests enhanced operational efficiency or pricing strategies that improve earnings quality.
Return on Equity (ROE)
Intuit Inc., ROE calculation, comparison to benchmarks
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | |||||||
| Stockholders’ equity | |||||||
| Profitability Ratio | |||||||
| ROE1 | |||||||
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Datadog Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Microsoft Corp. | |||||||
| Oracle Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Workday Inc. | |||||||
| ROE, Sector | |||||||
| Software & Services | |||||||
| ROE, Industry | |||||||
| Information Technology | |||||||
Based on: 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), 10-K (reporting date: 2020-07-31).
1 2025 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income
- There is a consistent upward trend in net income over the six-year period. Starting from US$1,826 million in 2020, net income increased annually except for a marginal rise between 2021 and 2022. The growth accelerated significantly after 2022, reaching US$3,869 million in 2025, indicating strong profitability improvement.
- Stockholders’ Equity
- Stockholders’ equity also shows a steady increase throughout the period. It began at US$5,106 million in 2020 and nearly doubled by 2021. The growth accelerated further by 2022 and continued rising at a slower but consistent pace, reaching US$19,710 million in 2025. This indicates strengthening capital base and retained earnings accumulation over time.
- Return on Equity (ROE)
- ROE exhibited a notable decline from 35.76% in 2020 to 12.57% in 2022, reflecting a reduction in profitability relative to equity despite rising net income. From 2022 onwards, ROE showed a recovery trend, increasing to 19.63% in 2025. This suggests improved efficiency in generating earnings from equity after the dip observed in earlier years.
- Overall Insights
- The company demonstrated robust growth in net income and equity, reflecting expansion and reinvestment. The initial decrease in ROE may be attributed to rapid equity growth outpacing earnings, but subsequent recovery indicates enhanced management effectiveness in leveraging equity to generate profit. The financial trends portray a positive outlook with strengthening profitability and capital foundation.
Return on Assets (ROA)
Intuit Inc., ROA calculation, comparison to benchmarks
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | |||||||
| Total assets | |||||||
| Profitability Ratio | |||||||
| ROA1 | |||||||
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Datadog Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Microsoft Corp. | |||||||
| Oracle Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Workday Inc. | |||||||
| ROA, Sector | |||||||
| Software & Services | |||||||
| ROA, Industry | |||||||
| Information Technology | |||||||
Based on: 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), 10-K (reporting date: 2020-07-31).
1 2025 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income
- The net income shows a consistent upward trend over the analyzed periods, increasing from $1,826 million in 2020 to a forecasted $3,869 million in 2025. This represents a significant growth trajectory, reflecting improved profitability and operational performance.
- Total Assets
- Total assets have more than tripled during the same period, rising from $10,931 million in 2020 to a projected $36,958 million in 2025. This substantial increase indicates an expansion of the company's asset base, which could be due to investments, acquisitions, or organic growth.
- Return on Assets (ROA)
- The ROA demonstrates some volatility throughout the years, declining from 16.7% in 2020 to a low of 7.45% in 2022 before gradually recovering to an estimated 10.47% by 2025. Despite the drop, the ratio's recovery suggests improving efficiency in asset utilization relative to net income. However, the ROA remains below the initial level of 2020, signaling that asset growth has outpaced profit growth in certain years.
- Overall Analysis
- The financial data reveals a company experiencing robust income growth alongside rapid asset expansion. The declining and then recovering ROA pattern implies that while the company is growing its asset base aggressively, it faced periods where profitability relative to assets was compressed. The forecasted improvements in ROA suggest management’s focus on enhancing asset efficiency and profitability moving forward.