Intuit Inc (INTU)

Financial leverage ratio

		Jul 31, 2025	Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021
Total assets	US$ in thousands	36,958,000	32,132,000	27,780,000	27,734,000	15,516,000
Total stockholders’ equity	US$ in thousands	19,710,000	18,436,000	17,269,000	16,441,000	9,869,000
Financial leverage ratio		1.88	1.74	1.61	1.69	1.57

July 31, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $36,958,000K ÷ $19,710,000K
= 1.88

The financial leverage ratio of Intuit Inc. demonstrates a fluctuating yet generally upward trend over the observed period from July 31, 2021, to July 31, 2025. Specifically, the ratio was 1.57 in 2021, indicating that the company's total assets were approximately 1.57 times its equity at that time. In 2022, the ratio increased to 1.69, reflecting a modest rise in the degree of financial leverage and suggesting an increased reliance on debt financing relative to equity. In 2023, the ratio slightly declined to 1.61, indicating a marginal reduction in leverage, yet still maintaining a level higher than the 2021 figure.

From 2023 onward, the ratio exhibits an upward trajectory, reaching 1.74 in 2024 and further increasing to 1.88 in 2025. This pattern indicates that Intuit Inc. is progressively increasing its leverage position, utilizing a proportionally higher level of debt in relation to its equity base. The overall trend suggests that the company's capital structure is becoming more leveraged over time, which could be a strategic decision to finance growth initiatives, manage capital costs, or optimize shareholder returns.

This progression in financial leverage ratio, rising from 1.57 to 1.88 over four years, highlights an increased risk profile due to greater reliance on debt; however, it could also imply a strategic effort to amplify returns for shareholders, provided the increased leverage is managed prudently and supported by the company's operational performance.