Intuit Inc. (NASDAQ:INTU)

The short-term operating activity ratios exhibit fluctuating patterns over the observed period. Generally, the ratios demonstrate considerable variability from quarter to quarter, suggesting sensitivity to underlying business conditions and potentially seasonal effects. A notable observation is the cyclical nature of several ratios, with peaks and troughs occurring at different points in time.

Receivables Turnover

Receivables turnover displays significant volatility. Initial values are high, followed by a substantial decrease in early 2021. The ratio then recovers, peaking in late 2021 and early 2022, before declining again. A similar pattern of decline and recovery is observed throughout 2023 and into 2025, with a final decrease in the most recent quarters. This suggests inconsistent efficiency in collecting receivables, potentially linked to changes in credit policies, sales terms, or overall economic conditions. The most recent values are lower than the initial values observed.

Payables Turnover

Payables turnover shows a less dramatic, but still noticeable, fluctuation. Values are relatively low in the initial periods, increasing through 2022 and reaching a peak in mid-2023. A subsequent decline is observed in late 2023 and continues into 2025. This indicates varying efficiency in managing payments to suppliers. The trend suggests a potential shift in negotiating power with suppliers or changes in payment terms. The most recent values are comparable to the initial values.

Working Capital Turnover

Working capital turnover exhibits the most pronounced fluctuations. A low initial value is followed by a substantial increase in early 2021, peaking in early 2022. The ratio then declines, followed by another increase in late 2023 and early 2024, before decreasing again. This suggests significant changes in the efficiency of utilizing working capital. The high values in 2022 indicate effective management of current assets and liabilities, while lower values suggest potential inefficiencies or increased investment in working capital. The most recent values are lower than the peak values observed.

Average Receivable Collection Period

The average receivable collection period generally mirrors the inverse of the receivables turnover ratio. It decreases significantly after the initial period, reaching a low of 9-11 days in late 2021 and early 2022. The period then increases, peaking at 24 days in early 2023, before fluctuating between 10 and 22 days. This indicates that, on average, the time taken to collect receivables varies considerably, with a recent trend towards longer collection periods.

Average Payables Payment Period

The average payables payment period is consistently higher than the receivable collection period, indicating a longer timeframe for settling obligations to suppliers. The period fluctuates significantly, peaking at 158 days in early 2022. A general decreasing trend is observed from 2022 through mid-2023, followed by a slight increase in the most recent periods. This suggests a varying ability to negotiate favorable payment terms with suppliers and manage cash flow effectively.

Overall, the observed trends suggest a dynamic operating environment. The fluctuations in these ratios warrant further investigation to understand the underlying drivers and potential implications for liquidity and profitability. The cyclical patterns suggest potential seasonality or responsiveness to broader economic factors.

The receivables turnover ratio exhibits considerable fluctuation over the observed period, spanning from October 2020 to July 2025. Initial values are relatively high, followed by a period of volatility and then a return to more moderate levels. A detailed examination reveals distinct phases in the ratio’s behavior.

Initial High Turnover (Oct 2020 - Jan 2021)

The ratio begins at 79.16 in October 2020, representing a very rapid collection of receivables. This is followed by a substantial decrease to 16.60 in January 2021, indicating a significant slowdown in the rate at which receivables are converted into cash. This initial drop is particularly noteworthy.

Period of Fluctuations (Apr 2021 - Oct 2021)

From April 2021 through October 2021, the ratio demonstrates a fluctuating pattern, ranging from 16.04 to 25.10. While there is some variability, the ratio generally remains within a band suggesting moderate collection efficiency. The increase from April to July 2021 could be attributed to seasonal factors or changes in credit policies.

Decreased Turnover & Subsequent Recovery (Jan 2022 - Jul 2022)

The ratio declines to 12.84 in January 2022, the lowest point in the observed period, suggesting a considerable lengthening of the collection cycle. However, a strong recovery is then observed, with the ratio increasing to 28.53 by July 2022. This rebound suggests a successful implementation of collection strategies or a change in customer payment behavior.

Peak Turnover & Subsequent Decline (Oct 2022 - Jan 2023)

The ratio reaches a peak of 34.68 in October 2022, indicating efficient receivables management. This is followed by a decrease to 15.15 in January 2023, mirroring the pattern observed in the initial period and suggesting potential cyclicality or seasonal effects. The ratio then experiences a moderate increase to 19.62 in April 2023.

Recent Trends (Apr 2023 - Jul 2025)

From April 2023 through July 2025, the ratio continues to fluctuate, generally remaining between 17.12 and 35.53. A peak of 35.53 is observed in July 2025. The most recent values suggest a stabilization around the mid-20s to low-30s, although continued monitoring is warranted to confirm this trend. The ratio in July 2025 is higher than the ratio in October 2023, indicating improved collection efficiency.

Overall, the receivables turnover ratio demonstrates a pattern of cyclicality, with periods of high turnover followed by declines and subsequent recoveries. The fluctuations suggest sensitivity to external factors or internal policy changes. While the ratio has generally trended towards moderate levels in the most recent periods, continued monitoring is recommended to assess the sustainability of this trend.

The accounts payable turnover ratio exhibits fluctuations over the observed period, spanning from October 2020 to July 2025. Initial values indicate a relatively high turnover, followed by a period of decline and subsequent variability. A general observation suggests a potential correlation between the ratio and the cost of revenue, though the relationship is not consistently direct.

Initial Period (Oct 31, 2020 – Jan 31, 2021)

The ratio begins at 5.25, representing a rapid rate of paying suppliers. This is followed by a substantial decrease to 2.82, indicating a slowing in the rate at which the company pays its suppliers. This initial decline could be attributed to a variety of factors, including changes in purchasing strategies or supplier payment terms.

Fluctuating Period (Apr 30, 2021 – Oct 31, 2022)

The ratio remains relatively stable, fluctuating between 2.56 and 3.98. This period demonstrates some variability, but generally suggests a moderate pace of paying suppliers. A peak of 3.98 is observed in October 2021, followed by a slight decrease.

Recent Trends (Jan 31, 2023 – Jul 31, 2025)

From January 2023, the ratio demonstrates increased volatility. It rises to 4.93 in April 2023, then to 5.83 in October 2023, suggesting an accelerated rate of paying down accounts payable. A subsequent decline to 4.24 in April 2025 is observed, followed by a rise to 4.86 in July 2025. This recent period indicates a more dynamic relationship with supplier payments.

Correlation with Cost of Revenue

A review of the cost of revenue alongside the payables turnover ratio suggests a possible, though not definitive, relationship. Periods of higher cost of revenue do not consistently correlate with higher or lower payables turnover. For example, the highest cost of revenue occurs in April 2025, coinciding with a moderate payables turnover of 4.86. Further investigation would be required to determine if a statistically significant correlation exists.

In summary, the payables turnover ratio demonstrates a pattern of initial decline, followed by fluctuating stability, and more recently, increased volatility. The observed changes warrant further investigation to understand the underlying drivers and potential implications for the company’s financial health and operational efficiency.

The working capital turnover ratio exhibits considerable fluctuation over the observed period, spanning from October 2020 to July 2025. Initial values indicate a relatively low turnover, followed by a period of increased volatility and, ultimately, a return towards levels seen earlier in the period.

Initial Period (Oct 2020 - Jan 2021)

The ratio begins at 1.74 in October 2020, demonstrating a low level of working capital utilization relative to net revenue. A substantial increase is then observed in January 2021, reaching 5.45. This suggests a significant improvement in the efficiency of working capital management or a decrease in working capital levels relative to revenue during this quarter.

Fluctuating Turnover (Apr 2021 - Oct 2022)

Following the peak in January 2021, the ratio experiences a decline to 3.40 in April 2021, then increases to 4.39 by October 2021. A sharp increase is then noted in January 2022, reaching a high of 21.87, likely due to a substantial decrease in working capital combined with consistent revenue. The ratio subsequently decreases to 5.68, 8.98, and 10.83 over the following three quarters, indicating a more normalized, though still elevated, level of turnover.

Peak and Subsequent Decline (Jan 2023 - Jul 2023)

The ratio reaches its highest point in the observed period at 15.31 in January 2023. This is followed by a substantial decrease to 6.30 in April 2023, 8.13 in July 2023, and 11.94 in October 2023. This suggests a potential build-up in working capital relative to revenue during these quarters.

Recent Trends (Oct 2023 - Jul 2025)

The ratio decreases to 13.92 in January 2024, then declines significantly to 5.15 in April 2024. It then increases to 7.45, 7.87, and 8.78 over the subsequent quarters, before decreasing to 4.22 in April 2025 and increasing slightly to 5.04, 6.70, and 7.04 by July 2025. This recent period demonstrates a return towards turnover levels observed in the earlier part of the analyzed timeframe.

Overall, the working capital turnover ratio demonstrates significant variability. The fluctuations suggest potential changes in the company’s operational strategies, seasonal patterns in working capital needs, or shifts in revenue generation relative to the investment in current assets. The high turnover rates observed in certain periods indicate efficient working capital management, while lower rates may suggest opportunities for improvement.

The average receivable collection period exhibits considerable fluctuation over the observed timeframe. Initially, the period was very short, at 5 days as of October 31, 2020, before increasing substantially and then demonstrating cyclical patterns.

Initial Period (Oct 31, 2020 – Jul 31, 2021)

The average collection period began at 5 days and increased to 22-23 days in the first two quarters of 2021. It then decreased to 15 days by July 31, 2021, suggesting an initial disruption in collection efficiency followed by a recovery.

Fluctuating Period (Oct 31, 2021 – Jul 31, 2023)

From October 31, 2021, through July 31, 2023, the collection period fluctuated between 11 and 28 days. A peak of 28 days was recorded in January 2022, followed by a decline to 11 days by July 2022. This pattern continued with a rise to 24 days in January 2023 and a subsequent decrease to 10 days in July 2023. This indicates inconsistent collection performance during this period.

Recent Period (Oct 31, 2023 – Jul 31, 2025)

The collection period increased to 22 days by January 2024, then decreased to 10 days by July 2024. It remained relatively stable at 9-11 days through April 2025, before increasing to 21 days by October 2025. This suggests a recent trend towards slower collection, although the period remains within the range observed previously.

Overall Trend

While there isn't a clear, sustained upward or downward trend, the average collection period demonstrates a cyclical pattern with peaks generally occurring in the January and October reporting periods. The period has generally remained between 10 and 25 days, with occasional deviations. The most recent data suggests a potential increase in the collection period, warranting further monitoring.

The variability in the average collection period may be attributable to several factors, including changes in credit policies, customer payment behavior, or seasonal sales patterns. Further investigation into these areas could provide valuable insights into the underlying drivers of these fluctuations.

The average payables payment period exhibited considerable fluctuation over the observed timeframe. Initially, the period stood at 70 days, increasing substantially to a peak of 158 days before demonstrating volatility and a general decreasing trend in subsequent periods.

Initial Increase and Peak (Oct 31, 2020 – Jan 31, 2022)

From October 31, 2020, to January 31, 2022, the average payables payment period increased from 70 days to 158 days. This represents a significant lengthening of the time taken to settle obligations to suppliers. The most pronounced increase occurred between October 31, 2020, and January 31, 2021, and again between April 30, 2021, and January 31, 2022. This could indicate a deliberate strategy to preserve cash, potentially in response to economic conditions, or a shift in supplier terms.

Subsequent Decline and Volatility (Apr 30, 2022 – Oct 31, 2023)

Following the peak, the average payables payment period generally decreased, falling to 71 days by October 31, 2023. However, this decline was not consistent, with periods of increase interspersed. For example, a rise was observed between April 30, 2022, and January 31, 2023, before a subsequent decrease. This suggests a dynamic approach to payment terms, potentially influenced by supplier negotiations or internal cash flow management.

Recent Trends (Jan 31, 2024 – Oct 31, 2025)

From January 31, 2024, through October 31, 2025, the average payables payment period continued to fluctuate. It decreased to a low of 63 days by April 30, 2025, before increasing again to 86 days by October 31, 2025. This recent volatility suggests ongoing adjustments to payment practices. The period ended at 86 days, representing an increase from the 76 days observed in July 31, 2024.

Overall, the observed pattern indicates a company that actively manages its payables, adjusting payment terms based on internal and external factors. The significant initial increase followed by periods of decline and recent volatility warrants continued monitoring to understand the underlying drivers and potential implications for supplier relationships and cash flow.