Intuit Inc. (NASDAQ:INTU)

The analysis of the financial ratios over the given periods reveals several noteworthy trends and fluctuations.

Receivables Turnover

The receivables turnover ratio exhibits significant volatility throughout the observed periods. Initially, it displays relatively elevated values, with peaks such as 79.16 and 51.54. Subsequently, the ratio fluctuates between approximately 12.84 and 39.65 in later quarters. This variability indicates an inconsistent rate of collecting receivables, with some periods reflecting rapid collections while others suggest slower turnover.

Payables Turnover

Payables turnover shows moderate fluctuations, mainly ranging from approximately 2.31 to 5.41. The earlier periods reveal lower turnover values around the 2.5 to 3.5 range, while later periods experience peaks exceeding 5.0. This pattern implies variable efficiency in paying suppliers, with some quarters characterized by quicker payments and others by slower turnover of payables.

Working Capital Turnover

Working capital turnover demonstrates high variability, with several pronounced peaks such as 21.87 and 15.31 in earlier and middle periods. Later periods stabilize somewhat with values generally between 4.22 and 13.92. These fluctuations suggest varying effectiveness in utilizing working capital to generate sales or revenue, with certain quarters indicating exceptional efficiency and others more moderate performance.

Average Receivable Collection Period

The average receivable collection period, measured in days, fluctuates between approximately 5 and 28 days. Earlier periods feature shorter collection times (around 5 to 7 days), while some middle quarters experience substantial increases reaching upwards of 28 days. More recent periods show improvements with days reducing back closer to the 10-15 day range, indicating efforts towards quicker collection.

Average Payables Payment Period

The average payables payment period also displays wide variation. It spans from a low of approximately 67 days to highs above 158 days. Earlier periods tend to have longer payment durations, with some quarters exceeding 140 days. More recent periods show a general trend towards reducing the payment period, with values clustering around 70 to 100 days, suggesting improved supplier payment practices.

Overall, the data reveals changing operational dynamics in managing receivables, payables, and working capital. While some ratios and periods indicate strong efficiency in cash conversion and payment cycles, others point to challenges in maintaining consistent turnover and payment durations. The trend towards normalization in collection and payment periods in the later quarters suggests a potential improvement in liquidity management.

The analysis of the quarterly financial data reveals several key trends in revenue and accounts receivable for the company over the reported periods.

Net Revenue

The net revenue shows notable fluctuations across the quarters, with periods of sharp increases followed by declines. Starting at 1,165 million US dollars in October 2019, revenue surged to 3,002 million in April 2020, indicating a strong growth phase. This was followed by a drop to 1,816 million in July 2020 and further volatility in subsequent quarters. Despite the fluctuations, there is an overall upward trajectory over the full period, reaching a peak of 7,754 million US dollars in July 2025. The recurrent pattern of significant increases followed by moderate declines suggests a cyclical revenue behavior potentially driven by seasonal factors or product/service demand cycles.

Accounts Receivable, Net

Accounts receivable values also demonstrate variability but within a narrower range compared to net revenue. Beginning at 104 million US dollars in October 2019, the values increase and peak variously, such as 1,017 million in July 2025. These increments correspond loosely with increases in revenue, reflecting the natural relationship between sales and amounts receivable. The data also shows some considerable jumps, such as the increase from 411 million in October 2021 to 889 million in January 2022, which may indicate changes in credit terms or collection patterns.

Receivables Turnover Ratio

The receivables turnover ratio, which reflects how efficiently the company collects its receivables, exhibits considerable volatility. There are extreme values such as 79.16 in January 2020 and lower values like 12.84 in October 2021. Generally, higher turnover ratios correspond to periods following steep declines in accounts receivable or spikes in revenue, indicating faster collection during those intervals. Conversely, lower ratios suggest slower collection periods coinciding with increased receivables or decreased revenue growth. This oscillation signals potential shifts in credit policy enforcement or customer payment behavior over time.

In summary, the financial data portrays a company experiencing significant growth in revenue with accompanying variations in receivables and collection efficiency. The cyclical nature evident in revenue and turnover ratios underlines the importance of careful management of accounts receivable to maintain liquidity amid fluctuating sales trends.

The analyzed financial data reveals several noteworthy trends across the examined periods. The cost of revenue fluctuates considerably, indicating varying expenses related to producing goods or services. Initial quarters show moderate costs, followed by substantial increases around early to mid-2021 and again in the years 2023 and 2024, peaking notably in July 2024. Despite some volatility, the overall direction suggests an upward trend in cost of revenue over time.

Accounts payable exhibit variability without a clear linear trend, reflecting changes in short-term obligations to suppliers. There are sharp increases at certain points, such as January 2022 and July 2025, which may indicate periods of higher procurement or delayed payments. The variability points to dynamic working capital management practices over the periods.

Cost of revenue

There are marked spikes, especially around April 2022, April 2023, and July 2024, suggesting increased cost burdens during these quarters. Despite some decreases, the general trajectory by the end of the series is higher than at the start, highlighting growing operational costs or expanded business activities.

Accounts payable

Fluctuations are observed with peaks in early 2020, early 2022, and mid-2025, potentially reflecting changes in supplier credit terms or purchasing volumes. The absence of a consistent trend underlines episodic adjustments rather than steady growth or decline.

Payables turnover ratio

The payables turnover ratio shows significant variation, ranging broadly across quarters. Early 2020 exhibits high turnover, indicating rapid payment cycles, followed by lower turnover ratios mid-2020, suggesting slower payments. From late 2021 through 2024, increased turnover ratios reappear, potentially reflecting improved payment efficiency or altered supplier relationships. The ratio's oscillations provide insight into fluctuating liquidity management practices.

Collectively, these patterns imply that operational costs are generally rising, accounts payable amounts are managed flexibly depending on situational factors, and the efficiency in settling payables varies but tends to improve in recent periods. Such dynamics could be attributed to changes in business scale, supply chain conditions, or strategic financial management decisions aimed at balancing cost control with supplier relations.

The financial data over multiple quarterly periods reveal notable fluctuations and trends across key metrics including working capital, net revenue, and working capital turnover.

Working Capital

Working capital exhibits significant volatility throughout the periods. Initially, the value increased substantially from 1,405 million USD in October 2019 to a peak of 4,499 million USD by October 2020. This peak was followed by a marked decline to around 522 million USD by January 2022. Subsequent quarters saw recovery phases with alternating decreases and rises, reaching a secondary peak of 4,311 million USD by October 2024. The broad pattern indicates cycles of accumulation and drawdown in working capital, with no consistent upward or downward long-term trend, suggesting an active management of short-term assets and liabilities in response to operational needs or market conditions.

Net Revenue

Net revenue demonstrates an overall upward trend with some pronounced spikes and troughs. Starting at 1,165 million USD in October 2019, revenue surged sharply to over 5,000 million USD by April 2022 and again surpassed similar high levels around 6,700 million USD by July 2024. These fluctuations appear to be cyclic but with a general growth trajectory, indicating increasing sales or service income over the span. The periods of rapid revenue increase often correspond with similar shifts in working capital, implying operational scaling or intensified business activity during these intervals.

Working Capital Turnover

The working capital turnover ratio reveals substantial variation and episodic spikes. Early available turnover values from July 2020 indicate moderate activity around 1.73, quickly increasing to extraordinarily high ratios such as 21.87 by January 2022. Elevated turnover ratios suggest efficient utilization of working capital to generate revenue, though extremely high values may also point to temporary reductions in working capital rather than only increased revenue efficiency. Later, the ratio stabilizes to a narrower range between approximately 4 and 15, with repeated peaks and falls, reflecting fluctuating operational efficiency and working capital management across periods.

In summary, the data illustrate a pattern of cyclical fluctuations in working capital alongside an overall upward momentum in net revenue. Working capital turnover exhibits pronounced variability, corresponding to changes in both working capital and revenue, highlighting dynamic operational adjustments. This interplay suggests active financial management aimed at optimizing liquidity and growth, albeit with short-term variability likely influenced by market or business cycle factors.

The data on receivables turnover and average receivable collection period reveals fluctuating patterns over the examined quarters.

Receivables Turnover Ratio

The receivables turnover ratio demonstrates considerable variability. Starting at 51.54 in mid-2020, it peaks at 79.16 shortly after, then drops sharply to 16.6. This volatility persists with values oscillating generally between mid-teens to around 40 in subsequent quarters. Periodically, spikes occur, such as near 39.65 and 38.94, followed by near-halving declines to values around 16 to 25. This pattern suggests irregular efficiency in turning over receivables, pointing to fluctuations in either credit policy enforcement or customer payment behavior over time.

Average Receivable Collection Period

The collection period inversely mirrors the turnover ratio trends, as expected. Initially, days outstanding decrease from 7 to 5 days, indicating quicker collection, then lengthen noticeably up to 28 days. Following this peak, the period shortens again to around 10-15 days but exhibits recurring variability with spikes to 22-24 days. This confirms the fluctuating nature of cash collection practices, with intermittent elongation of the receivables cycle.

Overall, the data indicates that the company experiences cycles of improved and deteriorated receivables management efficiency. Periods of high turnover and reduced collection days suggest intervals of strong cash collection, while sudden declines point to possible difficulties in collecting receivables promptly. This pattern could be linked to operational, seasonal, or market factors affecting customer payment timings and credit controls.

The analysis of the payables turnover ratio and the average payables payment period over the observed periods reveals notable fluctuations and patterns that suggest variability in the company's efficiency in managing its accounts payable.

Payables Turnover Ratio

The payables turnover ratio shows significant variation throughout the periods. Initially, from the point where data is first available, the ratio decreased sharply from 5.25 to a low of 2.31 within the subsequent quarters, indicating a slowdown in the rate at which the company is paying off its suppliers during that time. Following this, the ratio experienced oscillations with some recovery to levels above 4, specifically peaking at 5.12 and 5.41 in the middle to later periods. However, the trend includes intermittent declines, suggesting periods of slower payables turnover interspersed with faster turnover phases.

Average Payables Payment Period

This metric inversely correlates with the payables turnover, as expected. The average payment period increased from around 70 days to peaks exceeding 150 days, indicating that in some periods, the company took a substantially longer time to settle its obligations. Subsequently, the period declined notably, reaching lows near 67 days. The payment period showed considerable volatility, with some spikes correlating with the dips in turnover ratio, and reductions aligning with improvements in turnover. This suggests active variability in payment practices over the quarters.

Insights and Implications

The observed variability in these metrics points to inconsistent payment behavior or possibly strategic cash management decisions that alter over time. Periods with lower turnover and higher payment periods may reflect extended credit terms with suppliers or cash conservation strategies, whereas the higher turnover and shorter payment periods indicate quicker payments and potentially improved supplier relations or payment capacity. This lack of a stable trend may impact supplier negotiations and working capital management.