Intuit Inc (INTU)

Cash conversion cycle

		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
Cash conversion cycle	days	-41.33	-46.43	3.16	-81.75	-110.64

July 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 38.44 – 79.77
= -41.33

The cash conversion cycle (CCC) of Intuit Inc. has exhibited notable fluctuations over the observed period from July 31, 2021, to July 31, 2025. In July 2021, the CCC was recorded at approximately -110.64 days, indicating that the company was able to collect receivables and process payables sufficiently quickly to generate cash inflows prior to making cash outflows, effectively creating a negative cycle. This suggests strong operational efficiency and favorable working capital management.

By July 31, 2022, the CCC had improved, though remained negative at approximately -81.75 days, signifying an ongoing ability to generate cash flow ahead of payments, albeit with a reduced acceleration compared to the previous year. This change may point to slight operational adjustments or changes in receivables and payables timing.

The most notable shift occurred by July 31, 2023, when the CCC turned positive at approximately 3.16 days. This transition indicates that, for the first time within this period, the company was experiencing a slight lag where cash outflows slightly exceeded inflows associated with receivables and payables, signaling a potential slowdown in cash conversion efficiency or changes in operational cycle management.

Subsequent data shows a reversal of this trend. By July 31, 2024, the CCC returned to negative territory at approximately -46.43 days, reflecting a partial recovery where cash flows again started to precede cash outflows, though not as strongly as earlier years. Finally, by July 31, 2025, the CCC remained negative but slightly less so at approximately -41.33 days, suggesting a stabilization of operational efficiencies near previous levels.

Overall, the trend depicts a company that initially maintained a highly efficient, negative cash conversion cycle but experienced a temporary period of slight inefficiency in 2023 before reverting closer to previous advantageous conditions. These fluctuations highlight shifts in operational or credit management practices over the period, impacting the company's ability to cycle cash efficiently through its working capital processes.