Intuit Inc (INTU)
Liquidity ratios
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | |
|---|---|---|---|---|---|
| Current ratio | 1.36 | 1.29 | 1.47 | 1.39 | 1.94 |
| Quick ratio | 0.63 | 0.72 | 1.26 | 1.19 | 1.70 |
| Cash ratio | 0.44 | 0.54 | 0.97 | 0.90 | 1.46 |
The liquidity position of Intuit Inc. over the period from July 2021 to July 2025 reveals several notable trends across key ratios.
The current ratio, which measures the company's ability to meet short-term obligations with its current assets, exhibited a decline from 1.94 in July 2021 to 1.39 in July 2022. Although it experienced a slight recovery to 1.47 in July 2023, the ratio further decreased to 1.29 in July 2024 before increasing again to 1.36 in July 2025. Throughout this period, the current ratio remained above the generally accepted minimum of 1.0, indicating that the company maintained sufficient current assets relative to its current liabilities, albeit with some fluctuations.
The quick ratio, which assesses liquidity excluding inventories, showed a more pronounced decline over the period. It decreased from 1.70 in July 2021 to 1.19 in July 2022, followed by a modest increase to 1.26 in July 2023. However, the quick ratio experienced a sharper decline thereafter, reaching 0.72 in July 2024 and further decreasing to 0.63 in July 2025. This indicates that after 2023, the company's most liquid assets—excluding inventories—became less capable of covering short-term liabilities.
The cash ratio, which measures the most liquid assets (cash and cash equivalents) relative to current liabilities, declined from 1.46 in July 2021 to 0.90 in July 2022. It increased marginally to 0.97 in July 2023 but then declined again to 0.54 in July 2024 and further to 0.44 in July 2025. This downward trend suggests a decreasing proportion of cash and cash equivalents to current liabilities, indicating potential tightening of the company's immediate liquidity cushion.
Overall, the observed trends indicate that Intuit's liquidity ratios have experienced a general decline over the analyzed period, particularly after July 2022. While the current ratio maintained a position slightly above the threshold of 1.0, signaling ongoing short-term solvency, the quick and cash ratios reflected a more conservative picture, especially in recent years, highlighting reduced liquidity in the most liquid assets. These patterns suggest a potential focus on managing liquidity levels more cautiously, possibly reflecting strategic financial planning, operational changes, or shifts in working capital management.
See also:
Additional liquidity measure
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -41.33 | -46.43 | 3.16 | -81.75 | -110.64 |
The analysis of Intuit Inc's cash conversion cycle (CCC) over the period from July 31, 2021, to July 31, 2025, reveals significant fluctuations and a general trend towards improved cash flow efficiency.
In July 2021, the CCC was recorded at approximately -110.64 days, indicating that the company's cash inflows from receivables and operational activities outpaced its payables and inventory turnover, effectively generating cash before accounting for the payout of liabilities. This negative cycle suggests a highly efficient working capital management during that period.
By July 31, 2022, the CCC improved to approximately -81.75 days, signaling a reduction in the duration of net cash inflows and a positive shift in cash flow timing, although the cycle remained negative. This reduction indicates enhanced operational efficiency, but the cycle was still predominantly favorable for the company’s liquidity.
However, by July 31, 2023, the CCC shifted dramatically to 3.16 days, crossing into a positive territory for the first time in this series. This indicates a notable deterioration in cash flow management, where the company's operations now take slightly longer to generate cash inflows relative to its payables, potentially reflecting changes in receivables collection, inventory management, or payables timing.
The subsequent subsequent measure on July 31, 2024, shows the CCC at approximately -46.43 days, indicating a partial recovery toward earlier efficiencies but still not reaching the deeply negative figures observed in 2021 and 2022. Similarly, by July 31, 2025, the CCC was approximately -41.33 days, further demonstrating improvements in cash management but remaining less favorable than the prior years.
In sum, Intuit's cash conversion cycle experienced a significant decline in efficiency during 2023 but has shown signs of recovery in subsequent years. The shift from strongly negative to positive and back toward negative territory indicates periods of operational balancing, possibly reflecting strategic changes in receivables or payables management, credit policies, or inventory control efforts. This cyclic pattern underscores the importance of continuous working capital management and strategic cash flow planning for maintaining optimal liquidity positions.