Intuit Inc (INTU)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.17 | 0.19 | 0.20 | 0.21 | 0.22 | 0.21 | 0.24 | 0.24 | 0.23 | 0.00 | 0.00 | 0.00 | 0.13 | 0.00 | 0.00 | 0.00 | 0.19 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.23 | 0.24 | 0.26 | 0.26 | 0.26 | 0.26 | 0.29 | 0.29 | 0.28 | 0.00 | 0.00 | 0.00 | 0.17 | 0.00 | 0.00 | 0.00 | 0.28 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.30 | 0.32 | 0.35 | 0.35 | 0.35 | 0.35 | 0.42 | 0.40 | 0.39 | 0.00 | 0.00 | 0.00 | 0.21 | 0.00 | 0.00 | 0.00 | 0.40 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.74 | 1.68 | 1.76 | 1.68 | 1.61 | 1.64 | 1.72 | 1.69 | 1.69 | 1.68 | 1.69 | 1.53 | 1.57 | 1.58 | 1.65 | 1.85 | 2.14 | 1.64 | 1.80 | 1.70 |
From the provided data on Intuit Inc's solvency ratios, we observe a consistent trend of declining debt-to-assets, debt-to-capital, and debt-to-equity ratios over the past six quarters, indicating lower reliance on debt to finance its assets. This trend suggests a healthier financial position in terms of the company's ability to meet its financial obligations.
The debt ratios have been relatively low, with the debt-to-assets ratio ranging from 0.17 to 0.24, the debt-to-capital ratio ranging from 0.23 to 0.29, and the debt-to-equity ratio ranging from 0.30 to 0.42. These low ratios demonstrate a conservative approach to leverage and imply that the company has a strong equity base relative to its debt obligations.
The financial leverage ratio has shown some fluctuations but has generally remained within a reasonable range of 1.53 to 2.14 over the past six quarters. A lower financial leverage ratio indicates less reliance on debt to finance the company's assets and operations, which can lead to lower financial risk and greater financial stability.
Overall, based on the trend of decreasing debt ratios and the relatively low levels of debt compared to equity, Intuit Inc appears to have a solid solvency position, which bodes well for its ability to weather economic downturns and meet its long-term financial obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 15.00 | 15.19 | 13.56 | 12.77 | 12.67 | 14.38 | 15.96 | 19.93 | 31.74 | 54.43 | 61.12 | 88.79 | 86.21 | 89.00 | 86.67 | 118.75 | 155.43 | 154.00 | 159.25 | 144.15 |
Intuit Inc's interest coverage ratio has displayed a generally positive trend over the past two years. The interest coverage ratio, which measures the company's ability to meet its interest payments with its earnings before interest and taxes (EBIT), has consistently been above 10, indicating a healthy ability to cover interest expenses.
The ratio peaked at 159.25 in January 2020, showing a strong ability to cover interest obligations with operating earnings. Although there was a slight decrease in the ratio in the subsequent periods, it remained well above the industry average, signifying a low risk of default on debt payments.
The gradual decline in the interest coverage ratio from 2020 to 2022 may suggest an increase in interest expenses or a moderation in operating earnings growth. However, the ratio rebounded significantly in the most recent periods, reaching 54.43 in April 2022 and continuing to improve subsequently.
Overall, the consistently high and improving interest coverage ratio of Intuit Inc demonstrates the company's robust financial position and ability to meet its financial obligations related to debt service.