Intuit Inc. (NASDAQ:INTU)

Receivables turnover

The receivables turnover ratio demonstrates a notable decrease from 51.54 in 2020 to 24.64 in 2021, indicating a slower pace of collecting receivables during that period. Subsequently, there is a gradual improvement with the ratio rising to 28.53 in 2022 and further increasing to approximately 35.5 in the following years up to 2025. This trend reflects a recovery in the efficiency of receivables collection after the sharp decline in 2021, stabilizing at a moderate level.

Payables turnover

The payables turnover ratio declines sharply from 4.52 in 2020 to 2.7 in 2021, suggesting the company took longer to pay its suppliers during 2021. Starting in 2022, the ratio improves consistently, increasing to 3.26 and then peaking at 4.93 in 2023. It remains relatively stable around this higher level in 2024 and 2025. This indicates improved efficiency and quicker payments to suppliers after 2021.

Working capital turnover

The working capital turnover ratio exhibits significant growth from 1.73 in 2020 to a peak of 8.98 in 2022, implying a notable improvement in the utilization of working capital for generating sales. A slight decline is observed thereafter, with the ratio falling to 8.13 in 2023 and continuing to decrease to 7.45 in 2024, and more markedly to 5.04 by 2025. Although the ratio remains above the 2020 level, the recent downward trend may indicate a reduction in working capital efficiency over the last years.

Average receivable collection period

The average collection period for receivables doubles from 7 days in 2020 to 15 days in 2021, reflecting slower collections. This period shortens progressively thereafter, moving to 13 days in 2022 and stabilizing at 10 days from 2023 onwards. This pattern aligns with the receivables turnover trend, indicating improved collection speed from 2022 with stabilization at a more efficient level.

Average payables payment period

The payables payment period increases substantially from 81 days in 2020 to 135 days in 2021, indicating a delay in payments to suppliers. This duration decreases to 112 days in 2022 and further reduces sharply to 74 days in 2023. It remains fairly stable around 75 days through 2024 and 2025. The overall trend shows a return to quicker payments after 2021, though still longer than in 2020.

The financial data indicates a consistent upward trend in net revenue over the observed periods. Net revenue increased from $7,679 million in July 2020 to an estimated $18,831 million in July 2025. This represents significant growth, with steady year-over-year increases that suggest expanding operational scale or improved market performance.

Accounts receivable, net of allowance for doubtful accounts, also exhibits an overall increasing pattern. Starting at $149 million in July 2020, accounts receivable rose to $530 million by July 2025. There are minor fluctuations, such as a slight decrease from July 2022 to July 2023, but the general direction is upward. This rise is consistent with growing net revenue, indicating that more revenue is being recorded on credit.

The receivables turnover ratio shows a notable variation across the periods. Initially, the ratio declines sharply from 51.54 in July 2020 to 24.64 in July 2021, indicating a slower collection of receivables relative to credit sales during that year. Afterward, the ratio improves, climbing to 28.53 in July 2022 and further rising to approximately 35.5 by July 2024 and holding steady through July 2025. This suggests improvements in collection efficiency or changes in credit policy following the initial dip.

Net Revenue

Steady growth each year, nearly doubling over the five-year span.

Accounts Receivable

Gradual increase consistent with revenue growth, with minor fluctuations.

Receivables Turnover Ratio

Initial decline followed by a recovery trend, stabilizing at a mid-range level indicating moderate collection efficiency.

Overall, the data reflects strong revenue expansion accompanied by increased receivables, with collection efficiency recovering after an initial dip and stabilizing. These trends might demonstrate effective scaling with maintained or improving credit management after the observed downturn in turnover ratio.

The analysis of financial data over the six-year period ending July 31, 2025, highlights several notable trends in cost of revenue, accounts payable, and payables turnover ratio.

Cost of Revenue

There is a consistent upward trajectory in the cost of revenue, increasing from $1,378 million in 2020 to $3,848 million projected in 2025. This represents a substantial growth, more than doubling in five years, which suggests either increased sales volumes, higher input costs, or expansion of operations.

Accounts Payable

Accounts payable grew from $305 million in 2020 to $792 million in 2025, demonstrating a trend of rising liabilities associated with suppliers or short-term debts. Despite a dip in 2023, the overall pattern is upward, indicating potentially larger purchasing activity or extended credit terms.

Payables Turnover Ratio

The payables turnover ratio exhibited fluctuations over the period. It started at 4.52 in 2020, declined to its lowest point of 2.7 in 2021, suggesting slower payments to suppliers or increased credit terms. However, it recovered the following years, peaking at 4.93 in 2023 and stabilizing around 4.8 towards 2024 and 2025. This trend implies a return to faster payment cycles or improved operational efficiency in managing payables.

The financial data reveals several significant trends over the analyzed periods. Net revenue demonstrates a consistent upward trajectory, increasing steadily from 7,679 million US dollars in the earliest period to 18,831 million US dollars in the latest period. This indicates sustained growth in the company's ability to generate sales revenue.

Working capital figures exhibit more variability. Initially, working capital decreased markedly from 4,451 million US dollars to 1,417 million US dollars over the first three periods, reflecting a reduction in short-term assets relative to short-term liabilities. Following this decline, working capital began to recover, rising to 3,737 million US dollars by the latest period, suggesting improved liquidity and operational efficiency in more recent years.

The working capital turnover ratio, which measures how efficiently the company uses its working capital to generate revenue, shows a notable increase from 1.73 initially to a peak of 8.98, before gradually declining to 5.04. The initial rise suggests that the company significantly improved its ability to generate revenue per unit of working capital, potentially through better management of current assets and liabilities. The subsequent decline from the peak implies a moderation in this efficiency but still reflects higher turnover compared to the earliest period.

Net Revenue

Consistent and significant growth over the periods, indicating expanding sales and market presence.

Working Capital

Initial sharp decline followed by gradual recovery, indicating fluctuations in liquidity and operational resources.

Working Capital Turnover

Marked improvement in efficiency reaching a peak, followed by a moderate decrease, but remaining above the initial level, suggesting improved but stabilizing operational efficiency.

Overall, the data suggests a company experiencing expanding sales revenue accompanied by variable but improving management of working capital resources, resulting in higher operational efficiency over the longer term. Recent increases in working capital paired with strong revenue growth may indicate strategic investments or changing operational conditions requiring higher liquidity.

Receivables Turnover Ratio

The receivables turnover ratio showed a sharp decline from 51.54 in 2020 to 24.64 in 2021, indicating a significant reduction in how efficiently receivables were collected. Following this drop, the ratio gradually increased over the subsequent years, reaching 35.53 by 2025. This suggests a recovery in collection efficiency, though it did not return to the 2020 peak levels.

Average Receivable Collection Period (Days)

The average number of days to collect receivables lengthened from 7 days in 2020 to 15 days in 2021, reflecting slower collections during this period. Subsequently, this period shortened progressively, reaching a stable duration of 10 days from 2023 through 2025. This indicates improved and consistent efficiency in managing receivables collection after 2021.

Overall Trend and Insight

The data reveals a notable dip in receivables turnover and a corresponding increase in collection days in 2021, suggesting a period of less efficient credit management or changes in customer payment behavior. The partial recovery in turnover ratio combined with the stabilization of the collection period at 10 days from 2023 onwards points to enhanced operational control and an effective response to previous collection challenges.

Payables Turnover

The payables turnover ratio exhibited variability over the observed periods. It initially decreased from 4.52 in 2020 to a low of 2.7 in 2021. This was followed by a moderate increase to 3.26 in 2022, and a more pronounced rise to 4.93 in 2023. The ratio then slightly declined but remained relatively stable at 4.81 in 2024 and 4.86 in 2025. Overall, this reflects a period of decreased efficiency in paying suppliers around 2021, with a recovery and stabilization in subsequent years.

Average Payables Payment Period

The average payables payment period showed an inverse trend to the payables turnover. It rose significantly from 81 days in 2020 to 135 days in 2021, indicating an extension in the time taken to pay suppliers. Subsequently, the payment period decreased to 112 days in 2022 and then sharply reduced to 74 days in 2023. From 2023 onward, the payment period remained relatively consistent, with marginal fluctuations at 76 days in 2024 and 75 days in 2025. This suggests that after a peak delay in payments in 2021, the company improved its payment efficiency and maintained it consistently.