Intuit Inc (INTU)
Activity ratios
Short-term
Turnover ratios
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 13.59 | — | — | — |
| Receivables turnover | 30.44 | 33.11 | 12.14 | 14.75 | 38.20 |
| Payables turnover | 9.13 | 8.95 | 7.52 | 6.13 | 9.08 |
| Working capital turnover | 7.45 | 8.13 | 8.98 | 3.85 | 1.73 |
Inventory turnover: The inventory turnover ratio for Intuit Inc is not available for the most recent year. In the previous year, the company had an inventory turnover ratio of 13.59, indicating that the company was able to sell and replace its inventory approximately 13.59 times during that year.
Receivables turnover: Intuit Inc had a receivables turnover ratio of 30.44 in 2024, which was slightly lower than the previous year's ratio of 33.11. This indicates that the company collected its accounts receivable approximately 30.44 times during the year, showing efficient management of its credit sales and collection process.
Payables turnover: The payables turnover ratio for Intuit Inc has been gradually increasing over the years, reaching 9.13 in 2024 compared to 8.95 in the previous year. A higher payables turnover ratio suggests that the company is paying its suppliers more frequently, which could be a positive indicator of strong supplier relationships and efficient cash management.
Working capital turnover: Intuit Inc's working capital turnover ratio has been increasing consistently over the past few years, reaching 7.45 in 2024. This indicates that the company generated $7.45 in revenue for every dollar of working capital investment in that year. A higher working capital turnover ratio suggests that the company is effectively utilizing its working capital to generate sales.
Overall, based on the activity ratios analysis, Intuit Inc demonstrates efficient management of inventory, receivables, payables, and working capital, showcasing strong operational efficiency and effective utilization of resources in its business operations.
Average number of days
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 26.86 | — | — | — |
| Days of sales outstanding (DSO) | days | 11.99 | 11.03 | 30.06 | 24.74 | 9.55 |
| Number of days of payables | days | 39.98 | 40.80 | 48.54 | 59.50 | 40.20 |
Activity ratios provide insight into how efficiently a company manages its assets and operations. Looking at the activity ratios of Intuit Inc over the past five years, we can assess its performance:
1. Days of Inventory on Hand (DOH):
- In 2023, Intuit Inc had inventory on hand for approximately 26.86 days, indicating a moderate level of efficiency in managing inventory.
- The lack of data for other years prevents a comprehensive trend analysis of this ratio.
2. Days of Sales Outstanding (DSO):
- DSO measures how quickly the company collects its accounts receivable. Intuit Inc had a DSO of 11.99 days in 2024, compared to 11.03 days in 2023.
- A decreasing trend in DSO shows an improvement in the collection process, indicating that Intuit is efficiently managing its accounts receivable.
3. Number of Days of Payables:
- The number of days of payables reflects how long it takes the company to pay its suppliers. Intuit Inc had 39.98 days of payables in 2024, slightly lower than 40.80 days in 2023.
- A lower number of days of payables suggests the company is paying its suppliers more quickly, which could impact cash flow and relationships with vendors.
Overall, Intuit Inc has shown efficiency in managing its accounts receivable and payables, as seen in the decreasing trend of DSO and the relatively stable days of payables. However, the lack of data on inventory turnover limits a comprehensive analysis of the company's overall activity efficiency.
See also:
Intuit Inc Short-term (Operating) Activity Ratios
Long-term
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 16.14 | 14.83 | 14.33 | 12.35 | 10.46 |
| Total asset turnover | 0.51 | 0.52 | 0.46 | 0.62 | 0.70 |
Intuit Inc's long-term activity ratios provide insights into the company's efficiency in utilizing its assets to generate revenues. The fixed asset turnover ratio has shown a consistently increasing trend over the past five years, indicating that Intuit has been more effective in generating sales from its fixed assets such as property, plant, and equipment. This improvement suggests that the company has been able to extract more value from its investments in long-term assets.
On the other hand, the total asset turnover ratio has exhibited some fluctuations over the same period. Although it decreased from 2020 to 2022, the ratio rebounded in 2023 and 2024, albeit still below the levels seen in 2020. This ratio represents how efficiently the company generates sales from all its assets, both fixed and current, and the varying trend indicates some volatility in the overall asset utilization efficiency.
Overall, Intuit's increasing fixed asset turnover ratio reflects improvements in the efficiency of its core operations and capital investments. However, the fluctuating total asset turnover ratio suggests that there may be room for further optimization in the company's overall asset management to consistently generate higher revenues relative to its total asset base.