Stock Analysis on Net

Intuit Inc. (NASDAQ:INTU)

Analysis of Profitability Ratios 

Microsoft Excel

Profitability Ratios (Summary)

Intuit Inc., profitability ratios

Microsoft Excel
Jul 31, 2021 Jul 31, 2020 Jul 31, 2019 Jul 31, 2018 Jul 31, 2017 Jul 31, 2016
Return on Sales
Gross profit margin 82.53% 82.05% 82.80% 83.62% 84.37% 83.98%
Operating profit margin 25.95% 28.34% 27.33% 25.10% 26.95% 26.46%
Net profit margin 21.41% 23.78% 22.95% 20.31% 18.76% 20.86%
Return on Investment
Return on equity (ROE) 20.89% 35.76% 41.53% 51.44% 71.71% 84.32%
Return on assets (ROA) 13.29% 16.70% 24.78% 23.39% 23.87% 23.04%

Based on: 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31), 10-K (reporting date: 2018-07-31), 10-K (reporting date: 2017-07-31), 10-K (reporting date: 2016-07-31).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Intuit Inc. gross profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Intuit Inc. operating profit margin ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Intuit Inc. net profit margin ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Intuit Inc. ROE deteriorated from 2019 to 2020 and from 2020 to 2021.
ROA A profitability ratio calculated as net income divided by total assets. Intuit Inc. ROA deteriorated from 2019 to 2020 and from 2020 to 2021.

Gross Profit Margin

Intuit Inc., gross profit margin calculation, comparison to benchmarks

Microsoft Excel
Jul 31, 2021 Jul 31, 2020 Jul 31, 2019 Jul 31, 2018 Jul 31, 2017 Jul 31, 2016
Selected Financial Data (US$ in millions)
Gross profit 7,950  6,301  5,617  4,987  4,368  3,942 
Net revenue 9,633  7,679  6,784  5,964  5,177  4,694 
Profitability Ratio
Gross profit margin1 82.53% 82.05% 82.80% 83.62% 84.37% 83.98%
Benchmarks
Gross Profit Margin, Competitors2
Accenture PLC 32.38% 31.53% 30.81% 29.91% 30.00% 29.53%
Adobe Inc. 88.18% 86.62% 85.03% 86.77% 86.16% 86.00%
International Business Machines Corp. 54.90% 48.32% 47.30% 46.41% 45.78%
Microsoft Corp. 68.93% 67.78% 65.90% 65.25% 61.91%
Oracle Corp. 80.59% 79.68% 79.76% 79.71% 80.20%
Salesforce Inc. 74.41% 75.23% 74.02% 73.54% 73.38%
ServiceNow Inc. 77.05% 78.16% 76.98% 76.13% 74.15%

Based on: 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31), 10-K (reporting date: 2018-07-31), 10-K (reporting date: 2017-07-31), 10-K (reporting date: 2016-07-31).

1 2021 Calculation
Gross profit margin = 100 × Gross profit ÷ Net revenue
= 100 × 7,950 ÷ 9,633 = 82.53%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Intuit Inc. gross profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Operating Profit Margin

Intuit Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel
Jul 31, 2021 Jul 31, 2020 Jul 31, 2019 Jul 31, 2018 Jul 31, 2017 Jul 31, 2016
Selected Financial Data (US$ in millions)
Operating income from continuing operations 2,500  2,176  1,854  1,497  1,395  1,242 
Net revenue 9,633  7,679  6,784  5,964  5,177  4,694 
Profitability Ratio
Operating profit margin1 25.95% 28.34% 27.33% 25.10% 26.95% 26.46%
Benchmarks
Operating Profit Margin, Competitors2
Accenture PLC 15.08% 14.69% 14.59% 14.04% 12.60% 13.82%
Adobe Inc. 36.76% 32.93% 29.25% 31.45% 29.69% 25.51%
International Business Machines Corp. 11.97% 9.22% 13.67% 16.61% 14.91%
Mastercard Inc. 53.39% 52.81% 57.24% 48.71% 52.99%
Microsoft Corp. 41.59% 37.03% 34.14% 31.77% 24.82%
Oracle Corp. 37.58% 35.57% 34.26% 34.34% 33.69%
PayPal Holdings Inc. 16.80% 15.33% 15.30% 14.20% 16.24%
Salesforce Inc. 2.14% 1.74% 4.03% 2.25% 0.77%
ServiceNow Inc. 4.36% 4.40% 1.22% -1.63% -5.25%
Visa Inc. 65.56% 64.46% 65.29% 62.86% 66.15% 52.27%
Operating Profit Margin, Sector
Software & Services 31.73% 28.07% 28.15% 27.04% 24.45%
Operating Profit Margin, Industry
Information Technology 29.82% 26.10% 26.79% 27.57% 25.08%

Based on: 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31), 10-K (reporting date: 2018-07-31), 10-K (reporting date: 2017-07-31), 10-K (reporting date: 2016-07-31).

1 2021 Calculation
Operating profit margin = 100 × Operating income from continuing operations ÷ Net revenue
= 100 × 2,500 ÷ 9,633 = 25.95%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Intuit Inc. operating profit margin ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.

Net Profit Margin

Intuit Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel
Jul 31, 2021 Jul 31, 2020 Jul 31, 2019 Jul 31, 2018 Jul 31, 2017 Jul 31, 2016
Selected Financial Data (US$ in millions)
Net income 2,062  1,826  1,557  1,211  971  979 
Net revenue 9,633  7,679  6,784  5,964  5,177  4,694 
Profitability Ratio
Net profit margin1 21.41% 23.78% 22.95% 20.31% 18.76% 20.86%
Benchmarks
Net Profit Margin, Competitors2
Accenture PLC 11.69% 11.52% 11.06% 9.76% 9.37% 11.82%
Adobe Inc. 30.55% 40.88% 26.42% 28.69% 23.20% 19.96%
International Business Machines Corp. 10.01% 7.59% 12.22% 10.97% 7.27%
Mastercard Inc. 46.00% 41.90% 48.08% 39.19% 31.33%
Microsoft Corp. 36.45% 30.96% 31.18% 15.02% 23.57%
Oracle Corp. 33.96% 25.94% 28.05% 9.60% 24.74%
PayPal Holdings Inc. 16.43% 19.59% 13.84% 13.31% 13.71%
Salesforce Inc. 19.16% 0.74% 8.36% 1.22% 2.14%
ServiceNow Inc. 3.90% 2.62% 18.11% -1.02% -7.71%
Visa Inc. 51.07% 49.74% 52.57% 49.98% 36.49% 39.72%
Net Profit Margin, Sector
Software & Services 28.13% 23.43% 24.72% 15.78% 17.67%
Net Profit Margin, Industry
Information Technology 26.34% 22.29% 23.19% 19.78% 18.69%

Based on: 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31), 10-K (reporting date: 2018-07-31), 10-K (reporting date: 2017-07-31), 10-K (reporting date: 2016-07-31).

1 2021 Calculation
Net profit margin = 100 × Net income ÷ Net revenue
= 100 × 2,062 ÷ 9,633 = 21.41%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Intuit Inc. net profit margin ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.

Return on Equity (ROE)

Intuit Inc., ROE calculation, comparison to benchmarks

Microsoft Excel
Jul 31, 2021 Jul 31, 2020 Jul 31, 2019 Jul 31, 2018 Jul 31, 2017 Jul 31, 2016
Selected Financial Data (US$ in millions)
Net income 2,062  1,826  1,557  1,211  971  979 
Stockholders’ equity 9,869  5,106  3,749  2,354  1,354  1,161 
Profitability Ratio
ROE1 20.89% 35.76% 41.53% 51.44% 71.71% 84.32%
Benchmarks
ROE, Competitors2
Accenture PLC 30.25% 30.05% 33.17% 39.17% 38.50% 54.42%
Adobe Inc. 32.59% 39.66% 28.03% 27.67% 20.02% 15.74%
International Business Machines Corp. 30.38% 27.14% 45.25% 51.96% 32.70%
Mastercard Inc. 118.80% 100.31% 137.76% 108.60% 71.60%
Microsoft Corp. 43.15% 37.43% 38.35% 20.03% 29.29%
Oracle Corp. 262.43% 83.94% 50.87% 8.37% 17.33%
PayPal Holdings Inc. 19.19% 20.99% 14.56% 13.37% 11.22%
Salesforce Inc. 9.81% 0.37% 7.11% 1.36% 2.40%
ServiceNow Inc. 6.22% 4.18% 29.45% -2.40% -25.53%
Visa Inc. 32.75% 30.01% 34.83% 30.29% 20.45% 18.20%
ROE, Sector
Software & Services 38.19% 32.88% 37.55% 23.78% 24.38%
ROE, Industry
Information Technology 42.37% 35.05% 36.73% 30.80% 23.41%

Based on: 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31), 10-K (reporting date: 2018-07-31), 10-K (reporting date: 2017-07-31), 10-K (reporting date: 2016-07-31).

1 2021 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 2,062 ÷ 9,869 = 20.89%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Intuit Inc. ROE deteriorated from 2019 to 2020 and from 2020 to 2021.

Return on Assets (ROA)

Intuit Inc., ROA calculation, comparison to benchmarks

Microsoft Excel
Jul 31, 2021 Jul 31, 2020 Jul 31, 2019 Jul 31, 2018 Jul 31, 2017 Jul 31, 2016
Selected Financial Data (US$ in millions)
Net income 2,062  1,826  1,557  1,211  971  979 
Total assets 15,516  10,931  6,283  5,178  4,068  4,250 
Profitability Ratio
ROA1 13.29% 16.70% 24.78% 23.39% 23.87% 23.04%
Benchmarks
ROA, Competitors2
Accenture PLC 13.68% 13.78% 16.04% 16.61% 15.18% 19.95%
Adobe Inc. 17.70% 21.66% 14.22% 13.80% 11.65% 9.20%
International Business Machines Corp. 4.35% 3.58% 6.20% 7.07% 4.59%
Mastercard Inc. 23.06% 19.09% 27.77% 23.57% 18.36%
Microsoft Corp. 18.36% 14.70% 13.69% 6.40% 8.80%
Oracle Corp. 10.48% 8.78% 10.20% 2.79% 6.92%
PayPal Holdings Inc. 5.50% 5.97% 4.79% 4.75% 4.40%
Salesforce Inc. 6.14% 0.23% 3.61% 0.61% 1.02%
ServiceNow Inc. 2.13% 1.36% 10.41% -0.69% -4.39%
Visa Inc. 14.85% 13.43% 16.65% 14.88% 9.85% 9.36%
ROA, Sector
Software & Services 12.86% 10.51% 11.76% 7.57% 7.90%
ROA, Industry
Information Technology 15.42% 12.05% 12.91% 11.23% 9.16%

Based on: 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31), 10-K (reporting date: 2018-07-31), 10-K (reporting date: 2017-07-31), 10-K (reporting date: 2016-07-31).

1 2021 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 2,062 ÷ 15,516 = 13.29%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Intuit Inc. ROA deteriorated from 2019 to 2020 and from 2020 to 2021.