Intuit Inc (INTU)

Cash ratio

		Jul 31, 2025	Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021
Cash and cash equivalents	US$ in thousands	2,884,000	3,609,000	2,848,000	2,796,000	2,562,000
Short-term investments	US$ in thousands	1,668,000	465,000	814,000	485,000	1,308,000
Total current liabilities	US$ in thousands	10,370,000	7,491,000	3,790,000	3,630,000	2,655,000
Cash ratio		0.44	0.54	0.97	0.90	1.46

July 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,884,000K + $1,668,000K) ÷ $10,370,000K
= 0.44

The cash ratio of Intuit Inc. over the period from July 31, 2021, to July 31, 2025, reflects fluctuations that warrant a detailed examination. As of July 31, 2021, the cash ratio stood at 1.46, indicating that the company’s cash and cash equivalents were 1.46 times its current liabilities. This suggests a strong liquidity position, with sufficient cash reserves to cover short-term obligations without reliance on additional liquid assets or receivables.

By July 31, 2022, the cash ratio decreased significantly to 0.90, representing a reduction in liquidity but still maintaining a comfortable buffer whereby cash holdings covered approximately 90% of current liabilities. This decline suggests a possible utilization of cash resources for operational needs or investment, though the ratio remained within a generally acceptable range.

The ratio further edged down to 0.97 by July 31, 2023, indicating a slight rebound from the prior year's figure, and suggesting a stabilization in cash holdings relative to current liabilities. This slight increase may reflect strategic cash management or prudent liquidity positioning.

However, the trend turns more noteworthy with the decline to 0.54 as of July 31, 2024. The cash ratio falling below 1.0 indicates that cash and cash equivalents are only about half of current liabilities, pointing to a significant reduction in liquid cash relative to short-term obligations. This decline warrants attention as it may imply increased reliance on other liquidity sources or potential challenges in meeting immediate liabilities solely with cash.

Continuing this downward trajectory, the cash ratio drops further to 0.44 by July 31, 2025. This suggests that cash reserves cover less than half of current liabilities, potentially signaling a more leveraged liquidity position. Although a cash ratio below 1.0 is not uncommon in many industry contexts, the ongoing decline could indicate increased operational cash outflows, strategic capital deployment, or shifts in liquidity management.

Overall, the data reveals a decreasing trend in Intuit Inc.’s cash ratio over the analyzed period, moving from a strong liquidity position in 2021 towards a comparatively leaner cash reserve relative to current liabilities by 2025. Continuous monitoring of cash flow management and other liquidity indicators would be prudent to assess the company's capacity to meet short-term commitments under this evolving liquidity profile.