Intuit Inc (INTU)
Quick ratio
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 3,609,000 | 2,848,000 | 2,796,000 | 2,562,000 | 6,442,000 |
| Short-term investments | US$ in thousands | 465,000 | 814,000 | 485,000 | 1,308,000 | 608,000 |
| Receivables | US$ in thousands | 535,000 | 434,000 | 1,048,000 | 653,000 | 201,000 |
| Total current liabilities | US$ in thousands | 7,491,000 | 3,790,000 | 3,630,000 | 2,655,000 | 3,529,000 |
| Quick ratio | 0.62 | 1.08 | 1.19 | 1.70 | 2.05 |
July 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,609,000K
+ $465,000K
+ $535,000K)
÷ $7,491,000K
= 0.62
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term liabilities with its most liquid assets. A quick ratio of 1 or higher is generally considered satisfactory, indicating that a company has enough liquid assets to cover its current liabilities.
Intuit Inc's quick ratio has shown a declining trend over the past five years, decreasing from 2.05 in July 2020 to 0.62 in July 2024. This indicates that Intuit's ability to cover its short-term liabilities with its most liquid assets has weakened over this period.
A quick ratio of 0.62 as of July 31, 2024 suggests that Intuit may potentially face challenges in meeting its current obligations with its readily available assets. Investors and creditors may view this lower ratio as a signal of increased liquidity risk for the company.
It is important for Intuit to monitor its quick ratio closely and take appropriate actions to improve liquidity management to ensure its financial health and ability to meet short-term financial obligations.
Peer comparison
Jul 31, 2024