Intuit Inc (INTU)
Liquidity ratios
| 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 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.29 | 1.50 | 1.17 | 1.25 | 1.47 | 1.51 | 1.23 | 1.37 | 1.39 | 1.63 | 1.18 | 2.10 | 1.94 | 1.96 | 1.53 | 3.09 | 2.26 | 1.79 | 1.67 | 1.80 |
| Quick ratio | 0.62 | 0.76 | 0.26 | 0.46 | 1.08 | 0.97 | 0.55 | 1.13 | 1.19 | 1.29 | 0.86 | 1.76 | 1.70 | 1.72 | 1.25 | 2.75 | 2.05 | 1.55 | 1.33 | 1.39 |
| Cash ratio | 0.54 | 0.76 | 0.24 | 0.45 | 0.97 | 0.97 | 0.54 | 0.82 | 0.90 | 1.09 | 0.48 | 1.52 | 1.46 | 1.52 | 1.02 | 2.69 | 2.00 | 1.46 | 1.03 | 1.28 |
Intuit Inc's liquidity ratios demonstrate fluctuations over the reported periods. The current ratio, which measures the company's ability to cover short-term obligations with current assets, has ranged between 1.17 and 3.09. A current ratio above 1 indicates that Intuit Inc has more current assets than current liabilities, with higher values suggesting improved liquidity.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has ranged from 0.26 to 2.75. A quick ratio below 1 indicates potential difficulty in meeting short-term obligations without relying on inventory sales.
The cash ratio, which specifically measures the company's ability to cover current liabilities with cash and cash equivalents, has fluctuated between 0.24 and 2.69. A cash ratio above 1 signifies that Intuit Inc holds sufficient cash to cover its short-term obligations without relying on other current assets.
Overall, while the current ratio indicates generally healthy liquidity, the quick and cash ratios suggest potential variability in Intuit Inc's ability to meet short-term obligations over the reported periods. It is important for the company to maintain a balance between current assets and short-term liabilities to ensure continued financial stability.
See also:
Intuit Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -27.99 | -53.25 | 165.97 | 121.43 | -2.91 | -34.27 | -25.44 | -12.74 | -18.48 | -39.39 | -31.17 | -28.10 | -34.60 | -51.02 | -39.29 | -31.91 | -35.81 | -46.11 | -35.51 | -32.42 |
The cash conversion cycle of Intuit Inc fluctuated over the past few quarters.
On July 31, 2024, the company had a negative cash conversion cycle of -27.99 days, indicating that it efficiently converted inventory into cash. This was an improvement from the previous quarter which had a cash conversion cycle of -53.25 days.
In contrast, on January 31, 2024, the company experienced a significant increase in its cash conversion cycle to 165.97 days, suggesting a prolonged period between paying suppliers for inventory and receiving cash from customers. This was also reflected in the increase in October 31, 2023, with a 121.43 days cash conversion cycle.
The negative cash conversion cycle on July 31, 2023 (-2.91 days) and April 30, 2023 (-34.27 days) indicates efficient cash flow management during these periods.
Overall, Intuit Inc has shown variability in its cash conversion cycle, with some quarters demonstrating efficient management of working capital while others showing a need for improvement in the conversion of inventory to cash. It will be important for the company to monitor and manage its cash conversion cycle effectively to optimize its cash flow and operational efficiency.