Intuit Inc (INTU)
Return on total capital
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 5,081,000 | 3,792,000 | 3,237,000 | 2,623,000 | 2,585,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 19,710,000 | 18,436,000 | 17,269,000 | 16,441,000 | 9,869,000 |
| Return on total capital | 25.78% | 20.57% | 18.74% | 15.95% | 26.19% |
July 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $5,081,000K ÷ ($—K + $19,710,000K)
= 25.78%
The analysis of Intuit Inc's return on total capital over the specified period reveals notable fluctuations and an overall positive trend in the company's efficiency in generating profits from its capital base.
On July 31, 2021, the return on total capital stood at 26.19%, indicating a strong position in leveraging its capital to produce earnings. However, by July 31, 2022, this ratio experienced a significant decline to 15.95%, reflecting a decrease in the company's efficiency or potential increases in capital employed without a proportional increase in earnings. This downturn could be attributable to various factors, including changes in operating margins, increased capital expenditures, or shifts in revenue quality.
Subsequently, the return improved to 18.74% by July 31, 2023, signaling a recovery phase wherein the company managed to enhance its capital utilization or operational performance. The upward trend continued into July 31, 2024, with the ratio reaching 20.57%, further indicating ongoing improvements in the company's ability to generate earnings from its total capital. This progression may result from operational efficiencies, strategic initiatives, or changes in revenue streams favoring higher return metrics.
By July 31, 2025, the return on total capital increased to 25.78%, surpassing the levels observed in 2021, and approaching the high point established earlier. This suggests a substantial recovery and strengthening of the company's capital productivity, bringing it closer to its previous peak performance.
Overall, the trend indicates that despite the dip in 2022, Intuit Inc has demonstrated resilience and capacity for growth in its return on total capital, culminating in a robust position by mid-2025. This upward trajectory highlights effective management in capital deployment and potentially favorable market conditions or internal strategic initiatives that have contributed to the efficient utilization of its total capital base.
Peer comparison
Jul 31, 2025