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Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.

Economic Profit
Net Operating Profit after Taxes (NOPAT)
Cash Operating Taxes
Invested Capital
Cost of Capital
Economic Spread Ratio
Economic Profit Margin

Intuit Inc., economic profit calculation

US$ in millions

12 months ended:	Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020	Jul 31, 2019
Net operating profit after taxes (NOPAT)¹	2,668)	2,022)	2,300)	2,161)	1,795)	1,578)
Cost of capital²	15.10%	14.99%	14.70%	15.31%	14.97%	15.37%
Invested capital³	24,948)	23,712)	24,726)	12,248)	8,690)	4,546)

Economic profit⁴	(1,098)	(1,532)	(1,334)	286)	494)	879)

Based on: 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).

¹ NOPAT. See details »

² Cost of capital. See details »

³ Invested capital. See details »

⁴ 2024 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 2,668 – 15.10% × 24,948 = -1,098

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Item	Description	The company
Economic profit	Economic profit is a measure of corporate performance computed by taking the spread between the return on invested capital and the cost of capital, and multiplying by the invested capital.	Intuit Inc. economic profit decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Intuit Inc., NOPAT calculation

US$ in millions

12 months ended:	Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020	Jul 31, 2019
Net income	2,963)	2,384)	2,066)	2,062)	1,826)	1,557)
Deferred income tax expense (benefit)¹	(635)	(659)	99)	(43)	(100)	(28)
Increase (decrease) in allowance for doubtful accounts²	(2)	(24)	(65)	84)	9)	(2)
Increase (decrease) in deferred revenue³	(50)	112)	122)	27)	42)	39)
Increase (decrease) in accrued restructuring⁴	187)	—)	—)	—)	—)	—)
Increase (decrease) in equity equivalents⁵	(500)	(571)	156)	68)	(49)	9)
Interest expense	242)	248)	81)	29)	14)	15)
Interest expense, operating lease liability⁶	17)	17)	18)	10)	8)	—)
Adjusted interest expense	259)	265)	99)	39)	22)	15)
Tax benefit of interest expense⁷	(54)	(56)	(21)	(8)	(5)	(3)
Adjusted interest expense, after taxes⁸	205)	209)	78)	31)	18)	12)
Net operating profit after taxes (NOPAT)	2,668)	2,022)	2,300)	2,161)	1,795)	1,578)

Based on: 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).

¹ Elimination of deferred tax expense. See details »

² Addition of increase (decrease) in allowance for doubtful accounts.

³ Addition of increase (decrease) in deferred revenue.

⁴ Addition of increase (decrease) in accrued restructuring.

⁵ Addition of increase (decrease) in equity equivalents to net income.

⁶ 2024 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 529 × 3.30% = 17

⁷ 2024 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 259 × 21.00% = 54

⁸ Addition of after taxes interest expense to net income.

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Item	Description	The company
NOPAT	Net operating profit after taxes is income from operations, but after removement of taxes calculated on cash basis that are relevant to operating income.	Intuit Inc. NOPAT decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Intuit Inc., cash operating taxes calculation

US$ in millions

12 months ended:	Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020	Jul 31, 2019
Provision for income taxes	587)	605)	476)	494)	372)	324)
Less: Deferred income tax expense (benefit)	(635)	(659)	99)	(43)	(100)	(28)
Add: Tax savings from interest expense	54)	56)	21)	8)	5)	3)
Cash operating taxes	1,276)	1,320)	398)	545)	477)	355)

Based on: 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).

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Item	Description	The company
Cash operating taxes	Cash operating taxes are estimated by adjusting income tax expense for changes in deferred taxes and tax benefit from the interest deduction.	Intuit Inc. cash operating taxes increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Intuit Inc., invested capital calculation (financing approach)

US$ in millions

	Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020	Jul 31, 2019
Short-term debt	499)	—)	499)	—)	1,338)	50)
Long-term debt	5,539)	6,120)	6,415)	2,034)	2,031)	386)
Operating lease liability¹	529)	569)	626)	446)	267)	352)
Total reported debt & leases	6,567)	6,689)	7,540)	2,480)	3,636)	788)
Stockholders’ equity	18,436)	17,269)	16,441)	9,869)	5,106)	3,749)
Net deferred tax (assets) liabilities²	(695)	(60)	608)	517)	(63)	36)
Allowance for doubtful accounts³	5)	7)	31)	96)	12)	3)
Deferred revenue⁴	876)	926)	814)	692)	665)	623)
Accrued restructuring⁵	187)	—)	—)	—)	—)	—)
Equity equivalents⁶	373)	873)	1,453)	1,305)	614)	662)
Accumulated other comprehensive (income) loss, net of tax⁷	54)	55)	60)	24)	32)	36)
Adjusted stockholders’ equity	18,863)	18,197)	17,954)	11,198)	5,752)	4,447)
Capital in progress⁸	(17)	(360)	(283)	(122)	(90)	(65)
Available-for-sale debt securities⁹	(465)	(814)	(485)	(1,308)	(608)	(624)
Invested capital	24,948)	23,712)	24,726)	12,248)	8,690)	4,546)

Based on: 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).

¹ Addition of capitalized operating leases.

² Elimination of deferred taxes from assets and liabilities. See details »

³ Addition of allowance for doubtful accounts receivable.

⁴ Addition of deferred revenue.

⁵ Addition of accrued restructuring.

⁶ Addition of equity equivalents to stockholders’ equity.

⁷ Removal of accumulated other comprehensive income.

⁸ Subtraction of capital in progress.

⁹ Subtraction of available-for-sale debt securities.

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Item	Description	The company
Invested capital	Capital is an approximation of the economic book value of all cash invested in going-concern business activities.	Intuit Inc. invested capital decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Intuit Inc., cost of capital calculations

Jul 31, 2024

	Capital (fair value)¹	Weights					Cost of capital
Equity²	174,650)	174,650)	÷	181,231)	=	0.96	0.96	×	15.53%	=	14.97%
Debt³	6,052)	6,052)	÷	181,231)	=	0.03	0.03	×	4.56% × (1 – 21.00%)	=	0.12%
Operating lease liability⁴	529)	529)	÷	181,231)	=	0.00	0.00	×	3.30% × (1 – 21.00%)	=	0.01%
Total:	181,231)					1.00					15.10%

Based on: 10-K (reporting date: 2024-07-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Jul 31, 2023

	Capital (fair value)¹	Weights					Cost of capital
Equity²	154,031)	154,031)	÷	160,539)	=	0.96	0.96	×	15.53%	=	14.90%
Debt³	5,939)	5,939)	÷	160,539)	=	0.04	0.04	×	2.66% × (1 – 21.00%)	=	0.08%
Operating lease liability⁴	569)	569)	÷	160,539)	=	0.00	0.00	×	3.00% × (1 – 21.00%)	=	0.01%
Total:	160,539)					1.00					14.99%

Based on: 10-K (reporting date: 2023-07-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Jul 31, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	118,402)	118,402)	÷	125,796)	=	0.94	0.94	×	15.53%	=	14.62%
Debt³	6,768)	6,768)	÷	125,796)	=	0.05	0.05	×	1.58% × (1 – 21.00%)	=	0.07%
Operating lease liability⁴	626)	626)	÷	125,796)	=	0.00	0.00	×	2.90% × (1 – 21.00%)	=	0.01%
Total:	125,796)					1.00					14.70%

Based on: 10-K (reporting date: 2022-07-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Jul 31, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	155,004)	155,004)	÷	157,484)	=	0.98	0.98	×	15.53%	=	15.29%
Debt³	2,034)	2,034)	÷	157,484)	=	0.01	0.01	×	1.35% × (1 – 21.00%)	=	0.01%
Operating lease liability⁴	446)	446)	÷	157,484)	=	0.00	0.00	×	2.30% × (1 – 21.00%)	=	0.01%
Total:	157,484)					1.00					15.31%

Based on: 10-K (reporting date: 2021-07-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Jul 31, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	90,426)	90,426)	÷	94,121)	=	0.96	0.96	×	15.53%	=	14.92%
Debt³	3,428)	3,428)	÷	94,121)	=	0.04	0.04	×	1.41% × (1 – 21.00%)	=	0.04%
Operating lease liability⁴	267)	267)	÷	94,121)	=	0.00	0.00	×	3.10% × (1 – 21.00%)	=	0.01%
Total:	94,121)					1.00					14.97%

Based on: 10-K (reporting date: 2020-07-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Jul 31, 2019

	Capital (fair value)¹	Weights					Cost of capital
Equity²	74,995)	74,995)	÷	75,783)	=	0.99	0.99	×	15.53%	=	15.37%
Debt³	436)	436)	÷	75,783)	=	0.01	0.01	×	0.00% × (1 – 21.00%)	=	0.00%
Operating lease liability⁴	352)	352)	÷	75,783)	=	0.00	0.00	×	0.00% × (1 – 21.00%)	=	0.00%
Total:	75,783)					1.00					15.37%

Based on: 10-K (reporting date: 2019-07-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Intuit Inc., economic spread ratio calculation, comparison to benchmarks

	Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020	Jul 31, 2019
Selected Financial Data (US$ in millions)
Economic profit¹	(1,098)	(1,532)	(1,334)	286)	494)	879)
Invested capital²	24,948)	23,712)	24,726)	12,248)	8,690)	4,546)
Performance Ratio
Economic spread ratio³	-4.40%	-6.46%	-5.39%	2.34%	5.68%	19.34%
Benchmarks
Economic Spread Ratio, Competitors⁴
Accenture PLC	4.84%	5.63%	8.48%	10.32%	10.88%	9.61%
Adobe Inc.	—	5.20%	10.64%	13.05%	5.32%	3.43%
Autodesk Inc.	-10.63%	1.73%	-2.84%	-3.00%	4.64%	-16.38%
Cadence Design Systems Inc.	—	10.41%	9.79%	10.02%	10.82%	5.30%
CrowdStrike Holdings Inc.	-2.67%	0.98%	-2.28%	-4.55%	6.33%	—
International Business Machines Corp.	—	-1.57%	-9.42%	-4.43%	-4.15%	-0.43%
Microsoft Corp.	13.03%	16.07%	24.02%	33.03%	31.05%	26.17%
Oracle Corp.	-0.31%	-1.36%	-1.05%	7.01%	1.33%	4.01%
Palo Alto Networks Inc.	8.56%	14.57%	6.43%	-2.25%	-3.27%	-0.05%
Salesforce Inc.	-10.04%	-12.32%	-9.89%	-7.59%	-10.63%	-6.61%
ServiceNow Inc.	—	8.74%	4.20%	5.41%	7.04%	6.45%
Synopsys Inc.	—	-3.88%	2.70%	-3.32%	-3.14%	-6.13%

Based on: 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).

¹ Economic profit. See details »

² Invested capital. See details »

³ 2024 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -1,098 ÷ 24,948 = -4.40%

⁴ Click competitor name to see calculations.

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Performance ratio	Description	The company
Economic spread ratio	The ratio of economic profit to invested capital, also equal to the difference between return on invested capital (ROIC) and cost of capital.	Intuit Inc. economic spread ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Intuit Inc., economic profit margin calculation, comparison to benchmarks

	Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020	Jul 31, 2019
Selected Financial Data (US$ in millions)
Economic profit¹	(1,098)	(1,532)	(1,334)	286)	494)	879)

Net revenue	16,285)	14,368)	12,726)	9,633)	7,679)	6,784)
Add: Increase (decrease) in deferred revenue	(50)	112)	122)	27)	42)	39)
Adjusted net revenue	16,235)	14,480)	12,848)	9,660)	7,721)	6,823)
Performance Ratio
Economic profit margin²	-6.76%	-10.58%	-10.38%	2.96%	6.39%	12.88%
Benchmarks
Economic Profit Margin, Competitors³
Accenture PLC	2.74%	2.90%	4.08%	5.29%	5.54%	4.44%
Adobe Inc.	—	6.51%	12.39%	16.26%	7.63%	5.15%
Autodesk Inc.	-15.03%	2.21%	-4.02%	-4.14%	6.13%	-26.70%
Cadence Design Systems Inc.	—	10.37%	9.77%	10.18%	10.90%	5.14%
CrowdStrike Holdings Inc.	-4.20%	1.31%	-3.56%	-9.45%	5.56%	—
International Business Machines Corp.	—	-2.79%	-16.36%	-8.44%	-7.22%	-0.73%
Microsoft Corp.	18.22%	18.30%	23.02%	27.42%	23.05%	19.36%
Oracle Corp.	-0.59%	-2.63%	-1.93%	13.86%	3.02%	7.31%
Palo Alto Networks Inc.	9.08%	14.47%	7.50%	-3.03%	-5.30%	-0.06%
Salesforce Inc.	-23.22%	-31.38%	-27.46%	-17.40%	-26.15%	-13.01%
ServiceNow Inc.	—	7.03%	3.38%	4.68%	5.74%	4.72%
Synopsys Inc.	—	-5.47%	3.81%	-5.28%	-5.39%	-10.59%

Based on: 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31).

¹ Economic profit. See details »

² 2024 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted net revenue
= 100 × -1,098 ÷ 16,235 = -6.76%

³ Click competitor name to see calculations.

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Performance ratio	Description	The company
Economic profit margin	The ratio of economic profit to sales. It is the company profit margin covering income efficiency and asset management. Economic profit margin is not biased in favor of capital-intensive business models, because any added capital is a cost to the economic profit margin.	Intuit Inc. economic profit margin deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Intuit Inc. (NASDAQ:INTU)

Economic Value Added (EVA)

Economic Profit

Net Operating Profit after Taxes (NOPAT)

Cash Operating Taxes

Invested Capital

Cost of Capital

Economic Spread Ratio

Economic Profit Margin