Intuit Inc (INTU)
Solvency ratios
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.88 | 1.74 | 1.61 | 1.69 | 1.57 |
The solvency ratios for Intuit Inc. over the specified period indicate a consistent absence of debt, as evidenced by the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio remaining at zero from July 31, 2021, through July 31, 2025. This suggests that the company has maintained a debt-free capital structure during these years, relying primarily on equity and retained earnings for financing operations and growth.
The financial leverage ratio, however, demonstrates a gradual increase from 1.57 in 2021 to 1.88 in 2025. This ratio measures the extent to which a company's assets are financed through debt relative to equity. Although the leverage ratio has increased over the period, it remains below 2, indicating a moderate leverage position.
Overall, the data portrays Intuit Inc. as a company with a highly conservative or debt-averse capital structure, maintaining no debt levels throughout the analyzed period. The incremental rise in financial leverage may reflect an increased use of other forms of non-debt liabilities or a strategic move towards slight leverage, but the core debt ratios remain at zero, underscoring the company's strong solvency and low financial risk profile.
Coverage ratios
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | |
|---|---|---|---|---|---|
| Interest coverage | 20.57 | 15.67 | 13.05 | 32.38 | 89.14 |
The interest coverage ratio for Intuit Inc. has experienced significant fluctuations over the analyzed period from July 2021 to July 2025. As of July 31, 2021, the ratio was exceptionally high at 89.14, indicating a very strong ability to meet interest obligations relative to earnings before interest and taxes (EBIT). This high level suggests that the company had considerable operational earnings compared to its interest expenses, providing a substantial safety margin for lenders and investors.
By July 31, 2022, the ratio declined notably to 32.38. While still indicative of a robust capacity to cover interest expenses, the substantial decrease signals a reduction in earnings relative to interest obligations, potentially due to shifts in revenue, margins, or increased interest costs. The downward trajectory continued, with the ratio further decreasing to 13.05 as of July 31, 2023. This sharp decline reflects a tightening of the company's ability to comfortably cover interest expenses, though the ratio remaining above 10 still suggests a manageable debt servicing position.
Looking forward, the forecasted interest coverage ratios demonstrate an improving trend. By July 31, 2024, the ratio is projected to rise to 15.67, and further improve to 20.57 by July 31, 2025. These projections indicate a re-establishment of a healthier margin of safety, suggesting that the company expects to generate sufficient earnings to comfortably meet its interest obligations in the future.
Overall, the trend illustrates initial high leverage capacity with a sharp reduction in coverage during the period, followed by a positive projection of recovery and strengthening of Intuit Inc.'s ability to service interest expenses. The variability in ratios underscores that the company's interest coverage has been somewhat volatile, but current and forecasted figures point to a stabilization and improvement in financial risk management regarding interest obligations.