Intuit Inc (INTU)

Return on equity (ROE)

		Jul 31, 2025	Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021
Net income	US$ in thousands	3,869,000	2,963,000	2,384,000	2,066,000	2,062,000
Total stockholders’ equity	US$ in thousands	19,710,000	18,436,000	17,269,000	16,441,000	9,869,000
ROE		19.63%	16.07%	13.81%	12.57%	20.89%

July 31, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $3,869,000K ÷ $19,710,000K
= 19.63%

The analysis of Intuit Inc.'s return on equity (ROE) over the period from July 31, 2021, to July 31, 2025, reveals notable fluctuations and trends that merit detailed examination.

In the fiscal year ending July 31, 2021, the company's ROE stood at 20.89%, indicating a strong capacity to generate profits from shareholders' equity. However, this figure experienced a significant decline by July 31, 2022, reaching 12.57%, which suggests a reduction in profitability or increased equity without a proportionate increase in net income during that period.

Following this decrease, there was a modest recovery observed in the subsequent year, with ROE rising to 13.81% as of July 31, 2023. Despite this improvement, the ratio remained substantially below the 2021 peak, pointing to ongoing challenges in efficiently utilizing shareholders' equity to generate profits.

The upward trend continued into the fiscal year ending July 31, 2024, with ROE increasing to 16.07%. This indicates a positive momentum in the company's ability to translate equity investment into net income, although it still has not returned to the highest levels seen in 2021.

Looking ahead, the forecast for July 31, 2025, suggests a further improvement in ROE to 19.63%. This expected increase signifies a recovery phase and potentially reflects operational enhancements, strategic initiatives, or favorable market conditions that are enabling the company to better leverage its equity base.

In summary, Intuit Inc.'s ROE demonstrated a peak in 2021, experienced a notable decline thereafter, and has been on a gradual recovery path towards pre-2021 levels. The overall trend indicates that while the company faced profitability pressures post-2021, it appears to be on a trajectory of regained efficiency in generating returns for shareholders over the subsequent years.