Intuit Inc. (NASDAQ:INTU)

Receivables Turnover

The receivables turnover ratio exhibits considerable volatility throughout the time periods reported. Starting from a high of 77.98 in October 31, 2018, it declines sharply and fluctuates between approximately 11.82 and 79.16 in subsequent periods. Peaks tend to occur roughly every few quarters, followed by downturns to significantly lower values, indicating irregular collections or fluctuations in credit sales.

Payables Turnover

The payables turnover ratio shows a less volatile pattern compared to receivables turnover but still fluctuates notably. Values range primarily between 2.3 and 5.4, with the ratio increasing at some points, such as late 2019 and early 2021, and declining at others, such as mid-2020 and early 2022. This variability suggests changes in the pace of payments to suppliers, alternating between quicker and slower payment cycles.

Working Capital Turnover

The working capital turnover ratio demonstrates an overall upward trend over the periods with noticeable spikes. Early values are moderate, around 1.7 to 4.9, but a pronounced peak of 21.87 occurs in early 2021. Following this peak, the ratio remains elevated relative to earlier periods, fluctuating between approximately 5 and nearly 14, reflecting increased efficiency in utilizing working capital despite some variability.

Average Receivable Collection Period

The average receivable collection period displays significant fluctuations but generally ranges from around 5 to 31 days. Periods of longer collection days, such as 31 days in mid-2019 and around 28 days in early 2022, alternate with shorter collection periods down to 5 days in early 2020 and 2021. This variability aligns with the instability observed in receivables turnover, indicating inconsistent collection efficiency.

Average Payables Payment Period

The average payables payment period demonstrates considerable variation over the timeline, ranging from approximately 67 to 158 days. Peaks in the payment period, indicating slower payments, occur intermittently, notably in early 2021 and mid-2019. Periods with shorter payment durations around 70 days are also observed in late 2019 and early 2024. These shifts suggest changes in supplier payment strategies or cash flow management.

The quarterly financial data reveals several notable trends in key financial metrics over the examined periods. Net revenue exhibits a moderately cyclical pattern with evident seasonal fluctuations, characterized by peaks and troughs recurring annually. Overall, net revenue demonstrates a considerable upward trajectory from late 2018 to mid-2025. Significant surges in revenue are particularly observable in April quarters of successive years, with April 2025 reaching the highest point recorded in the dataset.

Accounts receivable, net, while generally following an upward trend similar to net revenue, shows more pronounced volatility. Peaks in receivables typically coincide with periods of high revenue, indicating a potential direct correlation between sales activity and amounts owed by customers. However, the ratio of accounts receivable to total revenue does not remain constant, suggesting fluctuations in collection periods or credit policies over time. Some intervals show substantial increases in accounts receivable, notably around January and April quarters of 2022 and 2024, implying variations in working capital management during these periods.

The receivables turnover ratio presents considerable variability across quarters. Initially high values in mid-2019 indicate efficient collection and turnover of receivables. However, subsequent fluctuations with intermittent declines, especially evident in the early to mid-2020 quarters, reflect potential easing in collection efficiency, possibly influenced by external factors or strategic decisions. From 2021 onward, the ratio generally maintains moderate to high levels, although periodic declines suggest some inconsistency in accounts receivable management. Notably, the turnover ratio spikes during certain quarters with lower accounts receivable balances relative to revenue, indicating periods of stronger liquidity and credit control.

In summary, the financial data demonstrates a positive revenue growth trend with seasonal peaks. Accounts receivable evolution generally aligns with revenue movements but shows volatility suggestive of dynamic credit and collection policies. The receivables turnover ratio's inconsistency highlights fluctuating collection efficiencies over the analyzed timeframe, with evidence of both strengthened and weakened receivables management episodes across different quarters.

Net Revenue

Exhibits an overall upward trend with recurring seasonal peaks, particularly strong in the April quarters, culminating in the highest revenue levels in 2025.

Accounts Receivable, Net

Displays volatility alongside general growth, with peaks often corresponding to revenue highs, reflecting variable credit terms or collection cycles.

Receivables Turnover Ratio

Shows significant quarterly fluctuations; periods of high turnover coincide with efficient receivables management, while dips suggest reduced collection efficiency or longer credit terms.

Cost of Revenue

The cost of revenue exhibits a general upward trend over the observed periods, with some fluctuations. Starting at 247 million USD in October 2018, it progressively increased with notable peaks such as 981 million USD in October 2023 and the highest value of 1194 million USD in April 2025. There are intermittent declines or slower growth intervals, for example around July 2019 and October 2020, but the overall trajectory is significantly upward, indicating growing expenses related to the production or delivery of goods and services.

Accounts Payable

Accounts payable values show considerable volatility but also a general increase from 209 million USD in October 2018 to a peak of 1038 million USD in April 2025. The pattern is not smooth, with multiple periods of rapid increases and decreases. For instance, a large jump occurs from January 2019 (400 million USD) to April 2019 (383 million USD) with some dips following, and another significant rise is observed in late 2024 and early 2025. This variability may reflect changes in payment cycles or supplier credit terms.

Payables Turnover Ratio

The payables turnover ratio fluctuates without a clear consistent trend but remains within a range approximately between 2.3 and 5.4. It reaches high points such as 5.41 in January 2025, implying faster payments or lower outstanding payables relative to cost of revenue at that time. Lower values, for example close to 2.31 in January 2022, suggest slower turnover or longer payment periods. The cyclical pattern implies variability in how quickly the company settles its payables, possibly responding to operational or strategic factors.

Overall Analysis

Cost of revenue and accounts payable both generally increase over the time frame but with differing degrees of volatility. The cost of revenue's steady growth suggests expansion or increased activity levels, while accounts payable's variability indicates changing supplier dynamics or payment management strategies. The payables turnover ratio's oscillations highlight that payment efficiency varies, with intervals of more rapid payments followed by slower cycles. Together, these data points suggest evolving operational scale accompanied by adaptable financial management of payables.

Working Capital

The working capital values exhibit considerable fluctuations over the observed periods. Initial values near 600 million rose sharply to peaks exceeding 4,400 million in mid-2020 and again near 4,300 million around late 2024. These peaks are interspersed with notable declines; for example, after the mid-2020 peak, working capital dropped to approximately 1,400 million by early 2021 and further fluctuated between roughly 500 million and 2,300 million through early 2023. This volatility suggests variability in short-term assets and liabilities management, possibly reflecting changing operational or investment activities over time.

Net Revenue

Net revenue has followed an overall upward trajectory with marked seasonality and occasional abrupt increases. Starting around 1,000 million in late 2018, revenues surged to surpass 4,000 million in early 2021 and continued to trend upward, reaching approximately 7,700 million by late 2024. Noteworthy are quarterly spikes coinciding with certain periods (e.g., April 2021, April 2022, October 2023, October 2024), suggesting seasonally strong quarters or successful product cycles. Despite these peaks, some quarters show moderate or even below-average revenues, indicating volatility within each fiscal year.

Working Capital Turnover

Working capital turnover ratios, indicative of how efficiently working capital is used to generate revenue, display significant variability. Early in the series, the data is sparse; from mid-2019 onward, ratios range broadly from as low as approximately 1.7 to an extreme peak near 22. A striking observation is the extremely high turnover ratio exceeding 20 in October 2021, which could suggest unusually efficient use of working capital during that quarter or a temporary reduction of working capital relative to revenue. Many subsequent quarters feature elevated turnover ratios generally between 5 and 15, indicating periods of improved asset utilization. Lower ratios around 1.7 to 3.2 occur in some quarters, reflecting less efficient capital usage or possibly higher working capital levels not matched by proportional revenue increases.

Overall Insights

The data reveals a company experiencing dynamic financial conditions with substantial fluctuations in working capital management while generally scaling its net revenues upward over time. The relationship between working capital and revenue, as indicated by the working capital turnover, shows periods of highly efficient capital usage intermixed with lower-efficiency phases. The spikes in revenue and turnover ratios during certain quarters suggest seasonality or specific operational events affecting performance. This variability underscores the importance of ongoing monitoring of liquidity and operational efficiency to sustain growth momentum and optimize resource utilization.

The receivables turnover ratio and the average receivable collection period display notable variation over the analyzed periods, reflecting fluctuations in the company's efficiency in collecting receivables.

Receivables Turnover Ratio

From the available data beginning in October 2018, the ratio exhibits significant volatility. Initially, high values such as 77.98 and 66.66 suggest a strong turnover, yet a sharp decline follows to values below 20 in early 2020. Subsequently, the ratio rises again, reaching peaks around 79 in October 2020 and varying between approximately 16 and 39 in the periods thereafter. The pattern indicates episodic fluctuations rather than a steady trend, possibly highlighting seasonal effects, shifts in credit policies, or changes in customer payment behaviors.

Average Receivable Collection Period

This metric inversely corresponds to the turnover ratio and also shows considerable variability. Early periods record low collection times of around 5 days, which increase significantly to periods as long as 31 days in April 2019. Subsequent periods demonstrate improvement, with collection times often below 20 days, and fluctuations appearing between approximately 9 and 28 days. This inconsistent pattern suggests variations in the collection efficiency or in the terms extended to customers.

Relationship between Metrics

The inverse relationship between receivables turnover and average collection period is evident, consistent with financial principles: when turnover is high, collection days are low, and vice versa. For example, high turnover values align with collection periods around 5 days, while low turnover corresponds with higher collection days.

Insights and Implications

The observed volatility in both ratios may point to varying factors affecting receivables management, such as economic cycles, customer payment patterns, or internal credit policies. The fluctuations could also indicate the impact of specific events or strategic changes within the periods. Overall, consistent improvements in reducing collection days or stabilizing the turnover ratio would be beneficial for liquidity management and operational efficiency. Continuous monitoring and targeted collection efforts might be advisable to moderate the observed swings and optimize receivables performance.

Payables Turnover Ratio

The payables turnover ratio exhibits considerable fluctuation across the periods analyzed. Starting from a lower-bound range around 2.31 to 2.82 in several quarters, it experiences peaks reaching above 5.0, notably around January 2021 and January 2025. This suggests intermittent periods of faster payment cycles, where payables are settled more rapidly. Conversely, the lower ratios observed in some quarters imply slower turnover and extended credit utilization.

Overall, the ratio does not exhibit a distinct, steady trend upwards or downwards but shows volatility with alternating increases and decreases. This pattern may reflect episodic changes in payment policies or shifts in supplier negotiations, impacting the frequency of accounts payable settlements.

Average Payables Payment Period (Days)

The average payables payment period inversely mirrors the payables turnover ratio trends, ranging from roughly 67 days at the shortest to as high as 158 days at the longest. There are noticeable spikes in lengthening payment periods around the mid-points of the timeline, such as in the quarters of April 2022 and July 2021, where payment days extended beyond 140 days.

Following these peaks, the payment period often contracts, decreasing to below 80 days in several more recent quarters. This indicates phases in which the company either delayed payments or extended credit terms, followed by intervals where it accelerated payments, shortening the days outstanding.

The fluctuating pattern suggests a dynamic approach in managing payables, possibly responsive to cash flow considerations, supplier terms, or business cycle factors affecting liquidity and working capital management.

Overall Insights

The analyzed data reveal a cyclical pattern between payables turnover and payment periods consistent with typical financial behavior where quicker turnover corresponds to shorter payment durations, and vice versa. The fluctuations indicate active management of payables rather than a static policy.

Periods with higher payables turnover and shorter payment durations could reflect strategic efforts to maintain favorable supplier relations or capitalize on early payment discounts. In contrast, longer payment periods might be indicative of cash preservation strategies during certain quarters.

No sustained directional trend is apparent over the examined interval, implying that payables management adapts to operational or market conditions rather than following a linear improvement or deterioration.