Intuit Inc (INTU)
Return on total capital
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,630,000 | 3,141,000 | 2,571,000 | 2,500,000 | 2,176,000 |
| Long-term debt | US$ in thousands | 5,539,000 | 6,120,000 | 6,415,000 | 2,034,000 | 2,031,000 |
| Total stockholders’ equity | US$ in thousands | 18,436,000 | 17,269,000 | 16,441,000 | 9,869,000 | 5,106,000 |
| Return on total capital | 15.14% | 13.43% | 11.25% | 21.00% | 30.49% |
July 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,630,000K ÷ ($5,539,000K + $18,436,000K)
= 15.14%
Intuit Inc's return on total capital has displayed a fluctuating trend over the past five years. In fiscal year 2020, the return on total capital was notably high at 30.49%, indicating efficient utilization of both debt and equity to generate profits. Subsequently, in fiscal year 2021, there was a slight decline in the return on total capital to 21.00%, though still reflecting strong performance.
However, in fiscal year 2022, the return on total capital declined further to 11.25%, suggesting a decrease in the company's ability to generate returns on the total capital employed. The following year, in fiscal year 2023, there was a modest improvement in the return on total capital to 13.43%, indicating some progress in the company's capital efficiency.
Most recently, in fiscal year 2024, Intuit Inc's return on total capital experienced another increase to 15.14%, suggesting a potential rebound in the company's capital utilization efficiency. Overall, the fluctuating trend in return on total capital highlights the importance of closely monitoring Intuit Inc's capital management strategies to ensure optimal utilization of resources and sustainable profitability.
Peer comparison
Jul 31, 2024