Intuit Inc (INTU)
Debt-to-assets ratio
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 5,539,000 | 6,120,000 | 6,415,000 | 2,034,000 | 2,031,000 |
| Total assets | US$ in thousands | 32,132,000 | 27,780,000 | 27,734,000 | 15,516,000 | 10,931,000 |
| Debt-to-assets ratio | 0.17 | 0.22 | 0.23 | 0.13 | 0.19 |
July 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $5,539,000K ÷ $32,132,000K
= 0.17
The debt-to-assets ratio measures the proportion of a company's assets financed by debt. A lower ratio generally indicates lower financial risk and better financial health.
Intuit Inc's debt-to-assets ratio has fluctuated over the past five years, ranging from 0.13 to 0.23. In 2024, the ratio decreased to 0.17 from 0.22 in 2023, showing a decrease in the proportion of debt used to finance assets. This indicates a conservative approach to debt management in the most recent fiscal year.
Although the ratio has varied, it has generally remained below 0.25, suggesting that Intuit has been conservative in its use of debt to finance its assets. This implies that a significant portion of the company's assets are funded through equity, which can be seen as a positive signal to investors and creditors, as it lowers the risk of financial distress.
Overall, the trend of Intuit Inc's debt-to-assets ratio indicates a prudent approach to capital structure management and financial risk mitigation.
Peer comparison
Jul 31, 2024