Intuit Inc (INTU)

Cash conversion cycle

		Jul 31, 2025	Apr 30, 2025	Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	373.93	285.60	48.78	46.74	47.77	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	38.44	145.16	123.68	29.59	29.52	34.60	49.69	25.91	28.48	36.81	51.16	28.45	30.06	21.10	36.14	18.47	24.48	22.92	29.23	5.96
Number of days of payables	days	77.46	99.36	101.57	65.24	73.41	92.00	87.03	71.26	74.09	110.95	103.03	91.76	111.81	144.65	157.83	105.11	135.11	142.44	129.39	69.52
Cash conversion cycle	days	-39.02	45.81	22.11	-35.64	-43.89	-57.40	336.60	240.25	3.16	-27.39	-4.10	-63.31	-81.75	-123.55	-121.70	-86.64	-110.64	-119.53	-100.16	-63.56

July 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 38.44 – 77.46
= -39.02

The analysis of Intuit Inc.’s cash conversion cycle (CCC) over the specified periods reflects significant fluctuations indicative of varying operational efficiencies and working capital management strategies.

From October 31, 2020, to October 31, 2021, the company maintained a negative CCC, ranging from approximately -63.56 days to -86.64 days. This negative cycle suggests that Intuit’s cash inflows from receivables and revenue recognition occurred considerably earlier than the cash outflows related to inventory and payables, reflective of effective receivables collection and supplier payment policies, possibly supported by the subscription-based revenue model which accelerates cash inflows.

During April 2022 to October 2022, the CCC remained negative but with slight fluctuations: around -123.55 days to -63.31 days, maintaining a generally strong operational cycle advantage. Notably, these periods display a tendency for swift collection of receivables relative to inventory and payable cycles, which is advantageous for liquidity.

A marked change emerges starting from January 2023, when the CCC approaches zero at -4.10 days, indicating a shift toward a more balanced cycle. By April 2023, the CCC extends to approximately -27.39 days, still negative but less so, suggesting a slight delay in cash inflows relative to outflows.

The most dramatic shift occurs between October 2023 and January 2024, when the CCC turns positive, reaching approximately 240.25 days in October 2023 and escalating to about 336.60 days by January 2024. This transition indicates that, during these periods, cash inflows lag significantly behind cash outflows, implying that the company’s receivables collection or revenue generation timing has become less swift, or that operational or strategic changes have influenced credit terms, payment policies, or revenue recognition.

Subsequent periods show a correction, with the CCC decreasing to negative values again—around -57.40 days in April 2024 and -43.89 days in July 2024—indicative of some stabilization or improvement in receivables collection or payables management. By October 2024, the CCC is slightly negative at -35.64 days, while further increases to positive territory occur in early 2025, with 22.11 days in January and 45.81 days in April, before reverting to negative at -39.02 days in July 2025.

In summary, Intuit’s cash conversion cycle has experienced considerable volatility over the analyzed period. The prolonged negative cycles from 2020 through late 2023 denote efficient working capital management with quick cash inflows relative to outflows, characteristic of its subscription revenue model. However, the unprecedented shift into positive territory in late 2023 and early 2024 suggests temporary operational or market changes affecting collection or payment cycles, warranting further investigation to understand underlying causes such as revenue deferrals, strategic credit policy adjustments, or changes in customer payment behavior.