Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Intuit Inc., short-term (operating) activity 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).
- Receivables Turnover
- The receivables turnover ratio experienced a significant decline from 77.98 in 2019 to 24.64 in 2021, indicating a notable slowdown in the collection of receivables. It slightly improved in 2022 to 28.53 and continued to increase moderately, reaching 35.63 by 2024. This suggests some recovery in collections efficiency, though still notably lower than the 2019 level.
- Payables Turnover
- The payables turnover ratio demonstrated moderate fluctuations. It increased slightly from 4.26 in 2019 to 4.52 in 2020 but dropped to a low of 2.7 in 2021. Afterward, it recovered significantly in 2022, reaching 4.93, and stabilized around 4.8 in 2023 and 2024. This pattern indicates an initial slowdown in payments to suppliers followed by a return to a quicker payment cycle.
- Working Capital Turnover
- The working capital turnover ratio showed considerable volatility. After a decrease from 4.17 in 2019 to 1.73 in 2020, a sharp increase occurred in 2022, peaking at 8.98. It then slightly declined but remained relatively high at 7.45 in 2024. This trend suggests improving efficiency in using working capital to generate sales after a period of underperformance.
- Average Receivable Collection Period (Days)
- The average receivable collection period increased markedly from 5 days in 2019 to 15 days in 2021, reflecting slower cash collections. However, it improved in subsequent years, reducing to 10 days by 2023 and maintaining this level in 2024, indicating enhanced efficiency in receivables management post-2021.
- Average Payables Payment Period (Days)
- The average payables payment period extended from 86 days in 2019 to a peak of 135 days in 2021, suggesting a lengthened timeframe in settling obligations. This period then shortened significantly, declining to 74 days by 2023, and slightly increasing to 76 days in 2024. This pattern implies a strategic shift towards faster payment cycles after 2021.
Turnover Ratios
Average No. Days
Receivables Turnover
Intuit Inc., receivables turnover 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 revenue | 16,285) | 14,368) | 12,726) | 9,633) | 7,679) | 6,784) | |
| Accounts receivable, net of allowance for doubtful accounts | 457) | 405) | 446) | 391) | 149) | 87) | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 35.63 | 35.48 | 28.53 | 24.64 | 51.54 | 77.98 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Accenture PLC | 5.47 | 6.00 | 5.87 | 5.74 | 6.16 | 5.79 | |
| Adobe Inc. | 10.38 | 8.73 | 8.53 | 8.41 | 9.20 | 7.28 | |
| Cadence Design Systems Inc. | 6.82 | 8.36 | 7.32 | 8.85 | 7.93 | — | |
| CrowdStrike Holdings Inc. | 3.58 | 3.58 | 3.94 | 3.66 | 2.92 | — | |
| Fair Isaac Corp. | 4.03 | 3.90 | 4.27 | 4.22 | 3.87 | 3.90 | |
| International Business Machines Corp. | 9.22 | 8.57 | 9.25 | 8.49 | 10.32 | — | |
| Microsoft Corp. | 4.31 | 4.35 | 4.48 | 4.42 | 4.47 | 4.26 | |
| Oracle Corp. | 6.73 | 7.22 | 7.13 | 7.48 | 7.04 | — | |
| Palantir Technologies Inc. | 4.98 | 6.10 | 7.38 | 8.08 | 6.96 | — | |
| Palo Alto Networks Inc. | 3.07 | 2.80 | 2.57 | 3.43 | 3.29 | 4.98 | |
| Salesforce Inc. | 3.05 | 2.92 | 2.72 | 2.73 | 2.77 | — | |
| ServiceNow Inc. | 4.90 | 4.41 | 4.20 | 4.24 | 4.48 | — | |
| Synopsys Inc. | 6.56 | 6.17 | 6.38 | 7.40 | 4.72 | 6.07 | |
| Workday Inc. | 4.43 | 3.96 | 4.14 | 4.18 | 4.13 | — | |
| Receivables Turnover, Sector | |||||||
| Software & Services | 5.06 | 5.13 | 5.19 | 5.22 | 5.57 | — | |
| Receivables Turnover, Industry | |||||||
| Information Technology | 6.97 | 7.45 | 7.42 | 7.52 | 7.91 | — | |
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
Receivables turnover = Net revenue ÷ Accounts receivable, net of allowance for doubtful accounts
= 16,285 ÷ 457 = 35.63
2 Click competitor name to see calculations.
- Net Revenue
- The net revenue exhibited a consistent upward trajectory over the evaluated periods, increasing from $6,784 million in 2019 to $16,285 million in 2024. This represents more than a twofold growth over the five-year span, indicating strong sales performance and likely market expansion or enhanced service offerings.
- Accounts Receivable, Net of Allowance for Doubtful Accounts
- The accounts receivable balance demonstrated a considerable increase from $87 million in 2019 to $457 million in 2024. This upward trend suggests a growing amount of sales made on credit, paralleling the rise in net revenue. Notably, there was a sharp increase, particularly between 2020 and 2021, where receivables more than doubled, potentially signaling changes in credit policies or customer payment behavior.
- Receivables Turnover Ratio
- The receivables turnover ratio declined markedly from 77.98 in 2019 to a low point around 24.64 in 2021, before rising slightly to approximately 35.63 in 2024. The initial decrease indicates a slowdown in the speed of collecting receivables relative to sales, implying that customers took longer to pay. The partial recovery in subsequent years suggests some improvement in collection efficiency, though the ratio remains below the early period levels, which could highlight increased credit risk or extended payment terms.
Payables Turnover
Intuit Inc., payables turnover calculation, comparison to benchmarks
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cost of revenue | 3,465) | 3,143) | 2,406) | 1,683) | 1,378) | 1,167) | |
| Accounts payable | 721) | 638) | 737) | 623) | 305) | 274) | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 4.81 | 4.93 | 3.26 | 2.70 | 4.52 | 4.26 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Accenture PLC | 15.94 | 17.41 | 16.37 | 15.03 | 22.48 | 18.16 | |
| Adobe Inc. | 6.53 | 7.50 | 5.71 | 5.98 | 5.63 | 7.98 | |
| Cadence Design Systems Inc. | 116.56 | 4.77 | 7.89 | — | — | — | |
| CrowdStrike Holdings Inc. | 26.82 | 13.25 | 8.05 | 19.03 | 105.30 | — | |
| Fair Isaac Corp. | 15.49 | 16.36 | 17.49 | 16.02 | 15.68 | 14.57 | |
| International Business Machines Corp. | 6.75 | 6.67 | 6.87 | 6.54 | 7.75 | — | |
| Microsoft Corp. | 3.37 | 3.64 | 3.30 | 3.44 | 3.68 | 4.57 | |
| Oracle Corp. | 6.42 | 11.27 | 6.74 | 10.54 | 12.46 | — | |
| Palantir Technologies Inc. | 5,495.05 | 35.56 | 9.12 | 4.53 | 21.55 | — | |
| Palo Alto Networks Inc. | 17.71 | 14.43 | 13.43 | 22.41 | 15.72 | 11.03 | |
| Salesforce Inc. | — | — | — | — | — | — | |
| ServiceNow Inc. | 33.63 | 15.25 | 5.74 | 15.20 | 28.83 | — | |
| Synopsys Inc. | 6.01 | 7.84 | 28.30 | 31.44 | 26.49 | 38.00 | |
| Workday Inc. | 22.71 | 11.16 | 25.74 | 15.85 | 18.51 | — | |
| Payables Turnover, Sector | |||||||
| Software & Services | 5.63 | 6.26 | 5.58 | 5.76 | 6.65 | — | |
| Payables Turnover, Industry | |||||||
| Information Technology | 4.27 | 4.79 | 4.25 | 4.63 | 4.92 | — | |
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
Payables turnover = Cost of revenue ÷ Accounts payable
= 3,465 ÷ 721 = 4.81
2 Click competitor name to see calculations.
- Cost of Revenue
- The cost of revenue has exhibited a consistent upward trend over the observed period, starting at 1,167 million USD in 2019 and rising to 3,465 million USD by 2024. This reflects a substantial increase more than tripling the cost, indicating either growth in sales volume, increased cost per unit, or possibly expansion activities.
- Accounts Payable
- Accounts payable values have shown fluctuations. Beginning at 274 million USD in 2019, an increase to a peak of 737 million USD occurred in 2022, followed by a decline to 638 million USD in 2023, with a moderate recovery to 721 million USD in 2024. This suggests variable management or changes in supplier credit terms during the period.
- Payables Turnover Ratio
- The payables turnover ratio initially increased slightly from 4.26 in 2019 to 4.52 in 2020, then sharply declined to 2.7 in 2021. Subsequently, it rose to 3.26 in 2022 and further improved to near previous high levels by 2023 and 2024, with values of 4.93 and 4.81 respectively. This pattern indicates a period of slower payment cycles or extended credit in 2021, reverting back to faster turnover and potentially improved liquidity management in later years.
Working Capital Turnover
Intuit Inc., working capital turnover 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) | |||||||
| Current assets | 9,678) | 5,557) | 5,047) | 5,157) | 7,980) | 3,594) | |
| Less: Current liabilities | 7,491) | 3,790) | 3,630) | 2,655) | 3,529) | 1,966) | |
| Working capital | 2,187) | 1,767) | 1,417) | 2,502) | 4,451) | 1,628) | |
| Net revenue | 16,285) | 14,368) | 12,726) | 9,633) | 7,679) | 6,784) | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | 7.45 | 8.13 | 8.98 | 3.85 | 1.73 | 4.17 | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Accenture PLC | 34.49 | 11.93 | 15.07 | 12.77 | 8.71 | 9.85 | |
| Adobe Inc. | 30.25 | 6.85 | 20.28 | 9.09 | 4.89 | — | |
| Cadence Design Systems Inc. | 1.75 | 10.61 | 9.92 | 4.01 | 3.94 | — | |
| CrowdStrike Holdings Inc. | 1.48 | 1.46 | 1.25 | 0.61 | 0.71 | — | |
| Fair Isaac Corp. | 7.24 | 8.02 | 8.99 | — | 10.83 | — | |
| International Business Machines Corp. | 46.83 | — | — | — | — | — | |
| Microsoft Corp. | 7.12 | 2.65 | 2.66 | 1.76 | 1.30 | 1.19 | |
| Oracle Corp. | — | — | 3.50 | 1.29 | 1.12 | — | |
| Palantir Technologies Inc. | 0.58 | 0.66 | 0.78 | 0.70 | 0.66 | — | |
| Palo Alto Networks Inc. | — | — | — | — | 1.40 | 1.80 | |
| Salesforce Inc. | 14.27 | 62.21 | 24.95 | 5.11 | 15.29 | — | |
| ServiceNow Inc. | 13.25 | 21.77 | 11.16 | 21.76 | 5.76 | — | |
| Synopsys Inc. | 1.60 | 13.12 | 21.34 | 10.65 | 9.00 | — | |
| Workday Inc. | 1.49 | 1.79 | 35.15 | 8.31 | 28.97 | — | |
| Working Capital Turnover, Sector | |||||||
| Software & Services | 10.32 | 5.14 | 4.74 | 2.76 | 2.19 | — | |
| Working Capital Turnover, Industry | |||||||
| Information Technology | 8.99 | 5.81 | 6.50 | 4.35 | 3.31 | — | |
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
Working capital turnover = Net revenue ÷ Working capital
= 16,285 ÷ 2,187 = 7.45
2 Click competitor name to see calculations.
- Working Capital
- Working capital exhibited substantial fluctuations during the analyzed period. It increased notably from 1,628 million in 2019 to a peak of 4,451 million in 2020. Subsequently, there was a sharp decline to 2,502 million in 2021, followed by another decrease to 1,417 million in 2022. The trend reversed thereafter, with the working capital rising again to 1,767 million in 2023 and further to 2,187 million in 2024. Overall, the pattern indicates volatility with a significant peak in 2020 and a gradual recovery in the last two years.
- Net Revenue
- Net revenue displayed a consistent and strong upward trajectory throughout the period. Starting at 6,784 million in 2019, it steadily increased year-over-year, reaching 7,679 million in 2020, 9,633 million in 2021, 12,726 million in 2022, 14,368 million in 2023, and 16,285 million in 2024. This indicates robust growth and expansion of the company's sales or service income over the six years.
- Working Capital Turnover
- The working capital turnover ratio demonstrated considerable variability. It began at 4.17 in 2019 but declined sharply to 1.73 in 2020, suggesting the increased working capital in 2020 was not proportionately supporting revenue generation. In 2021, the ratio recovered substantially to 3.85 and surged to a peak of 8.98 in 2022, indicating a more efficient use of working capital relative to revenue. The ratio then slightly declined but remained strong at 8.13 in 2023 and 7.45 in 2024. This suggests improved operational efficiency in managing current assets and liabilities in relation to net revenue over recent years.
Average Receivable Collection Period
Intuit Inc., average receivable collection period 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 | |||||||
| Receivables turnover | 35.63 | 35.48 | 28.53 | 24.64 | 51.54 | 77.98 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 10 | 10 | 13 | 15 | 7 | 5 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Accenture PLC | 67 | 61 | 62 | 64 | 59 | 63 | |
| Adobe Inc. | 35 | 42 | 43 | 43 | 40 | 50 | |
| Cadence Design Systems Inc. | 54 | 44 | 50 | 41 | 46 | — | |
| CrowdStrike Holdings Inc. | 102 | 102 | 93 | 100 | 125 | — | |
| Fair Isaac Corp. | 91 | 94 | 85 | 87 | 94 | 94 | |
| International Business Machines Corp. | 40 | 43 | 39 | 43 | 35 | — | |
| Microsoft Corp. | 85 | 84 | 81 | 83 | 82 | 86 | |
| Oracle Corp. | 54 | 51 | 51 | 49 | 52 | — | |
| Palantir Technologies Inc. | 73 | 60 | 49 | 45 | 52 | — | |
| Palo Alto Networks Inc. | 119 | 130 | 142 | 106 | 111 | 73 | |
| Salesforce Inc. | 120 | 125 | 134 | 134 | 132 | — | |
| ServiceNow Inc. | 74 | 83 | 87 | 86 | 82 | — | |
| Synopsys Inc. | 56 | 59 | 57 | 49 | 77 | 60 | |
| Workday Inc. | 82 | 92 | 88 | 87 | 88 | — | |
| Average Receivable Collection Period, Sector | |||||||
| Software & Services | 72 | 71 | 70 | 70 | 65 | — | |
| Average Receivable Collection Period, Industry | |||||||
| Information Technology | 52 | 49 | 49 | 49 | 46 | — | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 35.63 = 10
2 Click competitor name to see calculations.
- Receivables Turnover
- The receivables turnover ratio experienced a significant decline from 77.98 in 2019 to 24.64 in 2021, indicating a marked slowdown in the frequency with which receivables are collected within that period. Following 2021, the ratio improved moderately to 28.53 in 2022 and further to approximately 35.5 in both 2023 and 2024, suggesting a gradual recovery in collection efficiency but still remaining well below the 2019 level.
- Average Receivable Collection Period
- The average collection period exhibited an inverse trend compared to the receivables turnover. It increased from 5 days in 2019 to a peak of 15 days in 2021, reflecting a longer time taken to collect receivables, consistent with the lowered turnover ratio. After 2021, this period shortened to 13 days in 2022 and further to 10 days by 2023, maintaining this duration into 2024. This reduction signifies an improvement in the company's cash collection practices post-2021, though it has not returned to the exceptionally short period observed in 2019.
- Overall Insights
- The data indicates a period of diminished receivables efficiency around 2020 and 2021, likely influenced by external or internal factors impacting collection processes. Subsequent years show a steady recovery, with trends moving towards improved turnover and shorter collection periods, though not fully reverting to 2019 levels. This pattern highlights an initial challenge followed by a corrective phase improving working capital management related to accounts receivable.
Average Payables Payment Period
Intuit Inc., average payables payment period 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 | |||||||
| Payables turnover | 4.81 | 4.93 | 3.26 | 2.70 | 4.52 | 4.26 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 76 | 74 | 112 | 135 | 81 | 86 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Accenture PLC | 23 | 21 | 22 | 24 | 16 | 20 | |
| Adobe Inc. | 56 | 49 | 64 | 61 | 65 | 46 | |
| Cadence Design Systems Inc. | 3 | 77 | 46 | — | — | — | |
| CrowdStrike Holdings Inc. | 14 | 28 | 45 | 19 | 3 | — | |
| Fair Isaac Corp. | 24 | 22 | 21 | 23 | 23 | 25 | |
| International Business Machines Corp. | 54 | 55 | 53 | 56 | 47 | — | |
| Microsoft Corp. | 108 | 100 | 111 | 106 | 99 | 80 | |
| Oracle Corp. | 57 | 32 | 54 | 35 | 29 | — | |
| Palantir Technologies Inc. | 0 | 10 | 40 | 81 | 17 | — | |
| Palo Alto Networks Inc. | 21 | 25 | 27 | 16 | 23 | 33 | |
| Salesforce Inc. | — | — | — | — | — | — | |
| ServiceNow Inc. | 11 | 24 | 64 | 24 | 13 | — | |
| Synopsys Inc. | 61 | 47 | 13 | 12 | 14 | 10 | |
| Workday Inc. | 16 | 33 | 14 | 23 | 20 | — | |
| Average Payables Payment Period, Sector | |||||||
| Software & Services | 65 | 58 | 65 | 63 | 55 | — | |
| Average Payables Payment Period, Industry | |||||||
| Information Technology | 86 | 76 | 86 | 79 | 74 | — | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 4.81 = 76
2 Click competitor name to see calculations.
- Payables Turnover
- The payables turnover ratio experienced notable fluctuations across the periods analyzed. Beginning at 4.26 in the fiscal year ending July 2019, the ratio increased slightly to 4.52 in 2020, indicating a marginal acceleration in the rate at which payables were settled. However, there was a significant decline in 2021, with the ratio dropping to 2.7, suggesting slower payments to suppliers. This downward trend reversed partially in 2022, with the turnover ratio improving to 3.26, followed by a substantial increase to 4.93 in 2023, representing a faster turnover than all prior periods except 2024. The latest data from 2024 shows a slight decrease to 4.81, still maintaining a strong turnover rate compared to earlier years.
- Average Payables Payment Period
- The average payables payment period, expressed in number of days, exhibited a pattern roughly inverse to the payables turnover ratio. Starting at 86 days in 2019, there was a steady improvement in payment promptness in 2020, with the period shortening to 81 days. However, this was followed by a significant lengthening to 135 days in 2021, indicating slower payment cycles. This extended period shortened to 112 days in 2022 and further contracted sharply to 74 days in 2023. For the most recent year, 2024, the average payment period marginally increased to 76 days but remained well below the figures recorded in 2019-2021.
- Summary
- Overall, the data reflects a phase of slower payables turnover and extended payment periods during 2021, likely indicating changes in payment policies or operational challenges during that year. This was followed by a recovery characterized by improved payables turnover ratios and reduced payment periods in 2022 and beyond, suggesting an emphasis on efficient management of payables and supplier relationships. The sharp decline in the average payment period after 2021 aligns with the increase in payables turnover, highlighting management's efforts to optimize working capital and enhance liquidity. The slight changes observed in the latest year suggest a stabilization at relatively efficient payment practices compared to earlier years.