Intuit Inc (INTU)
Activity ratios
Short-term
Turnover ratios
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | 7.48 | — | — |
| Receivables turnover | 9.50 | 12.37 | 12.82 | 12.14 | 14.91 |
| Payables turnover | 4.58 | 4.81 | 4.93 | 3.26 | 2.70 |
| Working capital turnover | 5.04 | 7.45 | 8.13 | 8.98 | 3.85 |
The activity ratios for Intuit Inc. over the period from 2021 to 2025 present a nuanced view of the company's operational efficiency and management of working capital.
Inventory Turnover: The ratio was not available for 2021 and 2022 but was reported at 7.48 times in 2023. This indicates the company’s inventory held was sold and replaced approximately 7.5 times during that year. The absence of earlier data limits trend analysis; however, the 2023 figure suggests a level of inventory management efficiency consistent with a software and digital services company, which typically maintains low or negligible inventory levels.
Receivables Turnover: The receivables turnover decreased from 14.91 times in 2021 to 12.14 times in 2022, then slightly increased to 12.82 times in 2023 before slightly decreasing again to 12.37 and finally falling to 9.50 in 2025. This trend suggests a gradual decline in the efficiency of collecting accounts receivable, with the most significant drop noted in 2025, potentially indicating longer collection periods or changes in credit policies.
Payables Turnover: The ratio increased from 2.70 in 2021 to 3.26 in 2022, then experienced a substantial increase to 4.93 in 2023. It moderated slightly to 4.81 in 2024 and decreased marginally to 4.58 in 2025. The rising trend until 2023 indicates that the company was paying its suppliers more frequently or more promptly, which may reflect stronger supplier relationships or improved cash flow management. The slight decline post-2023 could suggest stretching out payment periods or changing payment practices.
Working Capital Turnover: The ratio increased significantly from 3.85 in 2021 to 8.98 in 2022, then remained relatively stable at 8.13 in 2023, followed by a decline to 7.45 in 2024 and further to 5.04 in 2025. These fluctuations reflect variations in how effectively the company is utilizing its working capital to generate sales. The peak in 2022 indicates a period of heightened efficiency, but the subsequent decline suggests a reduction in operational efficiency or changes in sales levels relative to working capital investments.
Overall, the data depict a company with generally efficient receivables and payables management but with some challenges in maintaining the same level of working capital efficiency over time. The stable inventory turnover points to a consistent approach toward inventory management, consistent with a primarily digital operations model. The trends in receivables and working capital ratios suggest a need to monitor collection and payment cycles to sustain operational effectiveness.
Average number of days
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 48.78 | — | — |
| Days of sales outstanding (DSO) | days | 38.44 | 29.52 | 28.48 | 30.06 | 24.48 |
| Number of days of payables | days | 79.77 | 75.95 | 74.09 | 111.81 | 135.11 |
The activity ratios for Intuit Inc. reveal notable trends over the observed period up to July 31, 2023, with some data points for subsequent years remaining unavailable or unspecified.
Starting with the Days of Inventory on Hand (DOH), there is no recorded data for 2021 and 2022. By July 31, 2023, the company reported an inventory turnover period of approximately 48.78 days, suggesting the inventory cycle lengthened considerably compared to potential earlier periods. This increase could indicate a buildup of inventory or changes in inventory management policies, warranting closer monitoring to assess the impact on liquidity and operational efficiency.
The Days of Sales Outstanding (DSO) demonstrates a moderate fluctuation over the years. In 2021, the DSO was approximately 24.48 days, increasing to about 30.06 days in 2022, and slightly decreasing to 28.48 days in 2023. These figures indicate that, on average, it takes roughly 2 to 4 weeks for the company to collect receivables, with a trend towards slight elongation but remaining within a relatively efficient collection period for a technology-oriented service company.
Regarding the Number of Days of Payables, there has been a consistent decrease from 135.11 days in 2021 to 74.09 days in 2023. This shortening of the payable period suggests an acceleration of payments to suppliers or creditors, potentially reflecting improved cash flow management or negotiated shorter credit terms. However, the increase to 75.95 days in 2024 and the projected depreciation to 79.77 days in 2025 (assuming available data) indicate some fluctuation but generally a trend towards a more balanced or slightly extended payable cycle.
In summary:
- The inventory turnover period increased substantially as of 2023, implying potential challenges in inventory management or shifts in product/service offerings.
- The receivables collection period remained relatively stable, with slight increases, indicating consistent credit collection practices.
- The payables period decreased significantly by 2023, implying faster payments to suppliers, which could impact liquidity and supplier relations.
These ratios collectively suggest a dynamic operational environment where inventory management and payables terms have evolved notably, potentially impacting the company's liquidity position and operational efficiencies. Further data would be needed to understand the underlying causes and overall financial health comprehensively.
See also:
Long-term
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 14.83 | 8.86 | 8.30 |
| Total asset turnover | 0.51 | 0.51 | 0.52 | 0.46 | 0.62 |
The analysis of Intuit Inc.'s long-term activity ratios reveals significant insights into its operational efficiency over recent fiscal periods. The fixed asset turnover ratio, which measures how effectively the company utilizes its fixed assets to generate sales, exhibits a notable upward trend, rising from 8.30 as of July 31, 2021, to 8.86 as of July 31, 2022, and further increasing substantially to 14.83 by July 31, 2023. The marked increase in this ratio indicates a significant improvement in the company's ability to generate revenue from its fixed assets, suggesting enhanced operational efficiency or reallocation of assets toward higher-margin activities. For the periods beyond 2023 (July 31, 2024, and 2025), data is not available, precluding the assessment of longer-term sustainability of this trend.
The total asset turnover ratio, which evaluates overall asset utilization in generating sales, shows a slight decline from 0.62 in 2021 to 0.46 in 2022, signaling a potential reduction in overall asset efficiency during that period. However, it recovers somewhat to 0.52 by 2023 and maintains stability at approximately 0.51 through 2024 and 2025. This stability, despite the prior decline, suggests that the company has reached a consistent level of asset utilization, reflecting a mature stage in its operational cycle or strategic adjustments that have stabilized asset efficiency over the recent years.
Overall, the data indicates a considerable enhancement in fixed asset utilization efficiency between 2021 and 2023, while the total asset turnover ratio experienced some fluctuation but generally stabilized in the subsequent years. These trends suggest that Intuit Inc. has markedly optimized its fixed asset base within this period, potentially through technological upgrades, better asset management, or focusing on higher-margin products and services, while its overall asset utilization has steadied after a prior decline.