Intuit Inc (INTU)
Interest coverage
| Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 5,081,000 | 4,576,000 | 3,929,000 | 3,709,000 | 3,765,000 | 3,921,000 | 3,616,000 | 3,498,000 | 3,250,000 | 3,107,000 | 2,701,000 | 2,459,000 | 2,623,000 | 3,100,000 | 2,634,000 | 2,612,000 | 2,585,000 | 2,673,000 | 2,155,000 | 2,411,000 |
| Interest expense (ttm) | US$ in thousands | 247,000 | 249,000 | 253,000 | 250,000 | 255,000 | 262,000 | 256,000 | 264,000 | 248,000 | 212,000 | 168,000 | 124,000 | 82,000 | 57,000 | 42,000 | 28,000 | 29,000 | 34,000 | 29,000 | 25,000 |
| Interest coverage | 20.57 | 18.38 | 15.53 | 14.84 | 14.76 | 14.97 | 14.12 | 13.25 | 13.10 | 14.66 | 16.08 | 19.83 | 31.99 | 54.39 | 62.71 | 93.29 | 89.14 | 78.62 | 74.31 | 96.44 |
July 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $5,081,000K ÷ $247,000K
= 20.57
The interest coverage ratios for Intuit Inc. demonstrate a significant decline over the period from late 2020 to late 2023, followed by a gradual recovery through early 2025. Specifically, the ratio was exceptionally high at 96.44x on October 31, 2020, indicating the company’s strong ability to cover its interest expenses at that time. The ratio experienced a steady decline over the subsequent periods, reaching its lowest point at 13.10x on July 31, 2023. This downward trend suggests a diminishing margin of safety in terms of interest coverage, implying that the company's earnings before interest and taxes (EBIT) relative to interest obligations decreased during this period.
Post-July 2023, the ratio begins to recover gradually, rising to 13.25x by October 31, 2023, and continuing its upward trend through early 2025, reaching approximately 20.57x by July 31, 2025. This pattern indicates an improving capacity to service interest expenses, possibly reflecting better earnings performance or reduced interest obligations.
Overall, while the ratio reflects a period of considerable financial tightening in terms of interest coverage, the recent upward trend suggests a positive trajectory in the company's ability to meet its interest commitments, albeit from a much lower level than observed in 2020.
Peer comparison
Jul 31, 2025