Intuit Inc (INTU)
Working capital turnover
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 16,285,000 | 14,368,000 | 12,726,000 | 9,633,000 | 7,679,000 |
| Total current assets | US$ in thousands | 9,678,000 | 5,557,000 | 5,047,000 | 5,157,000 | 7,980,000 |
| Total current liabilities | US$ in thousands | 7,491,000 | 3,790,000 | 3,630,000 | 2,655,000 | 3,529,000 |
| Working capital turnover | 7.45 | 8.13 | 8.98 | 3.85 | 1.73 |
July 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $16,285,000K ÷ ($9,678,000K – $7,491,000K)
= 7.45
Intuit Inc's working capital turnover has shown a fluctuating trend over the past five years. The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. The higher the ratio, the more efficiently the company is managing its working capital.
In 2024, Intuit Inc's working capital turnover ratio stands at 7.45, indicating that the company generated $7.45 in net sales for every dollar of working capital invested during the year. This represents a slight decrease from the previous year's ratio of 8.13.
Looking back over the past five years, the company has seen a significant improvement in its working capital turnover ratio, with a notable spike from 2020 to 2022. This improvement suggests that Intuit Inc has become more efficient in utilizing its working capital to drive revenue growth.
However, the decrease in the working capital turnover ratio in 2024 compared to the previous year may indicate a potential inefficiency in managing working capital or a change in the company's operating environment. It would be important for stakeholders to further analyze the underlying reasons behind this change and assess its implications for the company's financial performance and operational efficiency.
Peer comparison
Jul 31, 2024