Intuit Inc (INTU)
Profitability ratios
Return on sales
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 80.76% | 78.72% | 78.12% | 81.09% | 82.53% |
| Operating profit margin | 26.14% | 22.29% | 21.86% | 20.20% | 25.95% |
| Pretax margin | 25.67% | 21.80% | 20.80% | 19.97% | 26.53% |
| Net profit margin | 20.55% | 18.19% | 16.59% | 16.23% | 21.41% |
Based on the provided data, Intuit Inc's profitability ratios exhibit notable trends over the period from July 31, 2021, to July 31, 2025.
Gross profit margin reflects a slight overall decline from 82.53% in 2021 to 78.12% in 2023, followed by a modest recovery to 80.76% in 2025. This indicates a gradual narrowing of gross profit relative to revenue, potentially due to increased cost of goods sold or changes in sales prices. Despite this decline, the gross margin remains relatively high, suggesting the company maintains strong pricing power or efficient production costs.
The operating profit margin demonstrates a downward trend from 25.95% in 2021 to 20.20% in 2022, with a modest recovery to 21.86% in 2023. The upward movement continues into 2024 and 2025, reaching 22.29% and eventually 26.14%, respectively. This indicates an improvement in operational efficiency and cost management over time, contributing to a healthier profit before interest and taxes.
The pretax margin follows a similar pattern, decreasing from 26.53% in 2021 to a low of approximately 19.97% in 2022, then gradually increasing to 25.67% by 2025. The recovery signifies enhanced profitability before tax obligations, likely driven by improved operational performance and possibly favorable tax strategies.
Net profit margin shows a decline from 21.41% in 2021 to 16.23% in 2022, with a slight increase to 16.59% in 2023. The upward trend continues more significantly in subsequent years, reaching 18.19% in 2024 and 20.55% in 2025. This indicates an overall improving ability to translate revenues into net earnings, reflecting better cost control, expense management, or strategic initiatives.
Overall, while some profitability ratios experienced declines during the initial period, there is a trend toward recovery and growth toward 2025. The improvements in operating, pretax, and net profit margins suggest a strengthening of Intuit Inc's profitability profile, driven by efficiencies and possibly favorable market conditions or strategic adjustments.
Return on investment
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.32% | 11.30% | 11.31% | 9.27% | 16.11% |
| Return on assets (ROA) | 10.47% | 9.22% | 8.58% | 7.45% | 13.29% |
| Return on total capital | 25.78% | 20.57% | 18.74% | 15.95% | 26.19% |
| Return on equity (ROE) | 19.63% | 16.07% | 13.81% | 12.57% | 20.89% |
The profitability ratios of Intuit Inc. over the specified period reflect notable fluctuations and trends in the company’s ability to generate earnings relative to its assets and shareholders’ equity.
Starting with the Operating Return on Assets (Operating ROA), the data indicates a decline from 16.11% as of July 31, 2021, to a low of 9.27% in 2022. Subsequently, there was an improvement, reaching 11.31% by 2023 and maintaining a similar level at 11.30% in 2024. The ratio further increased to 13.32% in 2025, illustrating a gradual recovery in operational efficiency at the asset level after a period of contraction.
The Return on Assets (ROA) follows a similar downward trend, decreasing from 13.29% in 2021 to 7.45% in 2022. This was followed by a modest rise to 8.58% in 2023 and an upward trajectory to 9.22% in 2024, culminating at 10.47% in 2025. These shifts suggest improved effectiveness in asset utilization in recent years after a significant downturn.
The Return on Total Capital demonstrates a notable reduction from 26.19% in 2021 to 15.95% in 2022, then progressively increasing to 18.74% in 2023, 20.57% in 2024, and reaching 25.78% in 2025. This pattern reflects a recovery in the company's overall efficiency in generating returns from both debt and equity capital, indicating enhancing profitability in capital deployment.
Regarding the Return on Equity (ROE), the figures show a decline from 20.89% in 2021 to a low of 12.57% in 2022. Thereafter, a steady increase is observed, with ROE reaching 13.81% in 2023, 16.07% in 2024, and 19.63% in 2025. This trend suggests an improvement in shareholders’ earnings relative to their investments after the dip in 2022.
Overall, the data indicates that Intuit Inc. experienced a decline in key profitability ratios in 2022, likely attributable to external or internal factors affecting operational and asset efficiency. However, from 2023 onward, there has been a consistent upward trend across all ratios, reflecting a recovery in profitability and operational effectiveness, and a reassessment of the company's ability to generate returns for its shareholders.