Intuit Inc (INTU)
Return on total capital
| Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,630,000 | 3,798,000 | 3,471,000 | 3,372,000 | 3,141,000 | 3,049,000 | 2,666,000 | 2,452,000 | 2,571,000 | 3,048,000 | 2,567,000 | 2,486,000 | 2,500,000 | 2,581,000 | 2,080,000 | 2,375,000 | 2,176,000 | 1,540,000 | 1,911,000 | 1,874,000 |
| Long-term debt | US$ in thousands | 5,539,000 | 5,952,000 | 5,950,000 | 5,879,000 | 6,120,000 | 6,109,000 | 6,576,000 | 6,486,000 | 6,415,000 | — | — | — | 2,034,000 | — | — | — | 2,031,000 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 18,436,000 | 18,757,000 | 16,908,000 | 16,992,000 | 17,269,000 | 17,592,000 | 15,842,000 | 16,067,000 | 16,441,000 | 16,961,000 | 15,595,000 | 9,733,000 | 9,869,000 | 9,955,000 | 8,868,000 | 5,245,000 | 5,106,000 | 4,740,000 | 3,727,000 | 3,633,000 |
| Return on total capital | 15.14% | 15.37% | 15.19% | 14.74% | 13.43% | 12.86% | 11.89% | 10.87% | 11.25% | 17.97% | 16.46% | 25.54% | 21.00% | 25.93% | 23.46% | 45.28% | 30.49% | 32.49% | 51.27% | 51.58% |
July 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (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 shown a generally positive trend over the past several periods. The return on total capital was relatively stable between January 2020 and July 2021, ranging from 10.87% to 25.93%. However, there was a significant increase in return on total capital in October 2021, reaching 45.28% and further peaking at 51.58% in October 2019.
These higher percentages suggest that Intuit Inc has been able to effectively generate profits relative to the total capital employed in the business during these periods. The company's ability to achieve higher returns on total capital indicates efficient utilization of resources and effective management of assets and liabilities. It also reflects positively on Intuit's investment decisions and overall financial performance.
The fluctuations in return on total capital over the periods reflect variations in profitability and efficiency in capital allocation. It is important for investors and stakeholders to monitor these ratios over time to assess the company's financial health and performance sustainability.
Peer comparison
Jul 31, 2024