Intuit Inc. (NASDAQ:INTU)

Debt to Equity Ratios

The debt to equity ratio experienced significant fluctuations over the reported periods. Initially, it remained low from late 2019 through early 2020, with values ranging between 0.08 and 0.12. However, a sharp increase occurred in July 2020, reaching a peak of 0.66, followed by a gradual decline and stabilization around 0.3 to 0.4 in subsequent quarters. Including operating lease liabilities increased the ratios consistently, peaking at 0.7 in July 2020 and subsequently stabilizing slightly above the traditional measurement, indicating the company’s lease obligations contribute materially to overall leverage.

Debt to Capital Ratios

Similarly, the debt to capital ratio displayed a marked rise during mid-2020, increasing from 0.08 in April 2020 to 0.4 by July 2020. After this peak, the ratio declined steadily and stabilized near 0.23 to 0.27 in the latest quarters observed. When including operating lease liabilities, the ratio followed the same pattern but presented consistently higher values, underscoring that lease liabilities significantly affect the firm's capital structure metrics.

Debt to Assets Ratios

The debt to assets ratio mirrored preceding trends, with a noticeable increase to 0.31 in July 2020 from approximately 0.05 in April 2020. This was followed by a gradual decrease to below 0.2 in the most recent quarters. Inclusion of operating lease liabilities again elevated the ratio across periods but maintained the same general trend, emphasizing the material impact of leases on total asset financing.

Financial Leverage

Financial leverage ratios were relatively stable but showed a modest upward trend over the long term. Early values ranged from 1.58 to 1.8, with a slight increase beginning in late 2022, peaking near 1.88 by mid-2025. This suggests a gradual rise in the company’s reliance on debt relative to equity, implying cautious incremental leveraging.

Interest Coverage Ratio

Interest coverage data begins from mid-2020 with robust values initially around 158 but declined steadily to reach about 13 to 20 in the quarters spanning 2022 to 2025. Despite the decreasing trend, interest coverage remained comfortably above typical risk thresholds, indicating the company maintained sufficient earnings to cover interest obligations throughout the period but with less margin over time.

The financial data reveals fluctuations in total debt, stockholders’ equity, and debt-to-equity ratios over the examined periods. The changes indicate dynamic capital structure management and evolving financial leverage.

Total Debt

Total debt experienced significant variation throughout the periods. Initially, debt was relatively stable and low, ranging between US$398 million and US$423 million until early 2020. A pronounced spike occurred in the quarter ending July 31, 2020, with total debt surging sharply to US$3,369 million, which then decreased gradually but remained elevated compared to pre-spike levels. After a decline from the peak, debt stabilized around the US$2,000 million mark during late 2020 and early 2021. Another substantial increase is observed starting October 31, 2021, reaching a peak of US$7,077 million by January 31, 2023, before resuming a downward trend, ending at US$5,973 million in the most recent quarter. This pattern indicates episodic borrowing or refinancing activities, likely corresponding to specific strategic or operational needs.

Stockholders’ Equity

Stockholders’ equity generally exhibited an upward trajectory, increasing from US$3,633 million in October 2019 to levels consistently above US$15 billion from the fourth quarter of 2020 onward. Notable growth occurred between January 31, 2021, and January 31, 2022, when equity rose sharply from US$8,868 million to US$15,595 million and further to US$16,961 million by April 30, 2022. Despite minor fluctuations post this period, equity remained relatively stable in the range of approximately US$16 billion to US$20 billion, reflecting sustained value generation or capital issuance activities. The gradual increases suggest consistent accumulation of retained earnings or capital injections.

Debt to Equity Ratio

The debt-to-equity ratio mirrors the movements in debt and equity. Initially, it was low, ranging from 0.08 to 0.12, indicating conservative leverage. Following the spike in debt during mid-2020, the ratio increased sharply to 0.66 but then decreased steadily as equity increased and debt reduced. Periods of higher debt issuance are reflected in ratio spikes, such as the rise to 0.43 in late 2020 and early 2021, and subsequent fluctuations between 0.3 and 0.45 in later quarters. The trend shows a general moderation of leverage after peaks, maintaining a moderate ratio near 0.3 in the latest periods, which reflects balanced financial risk management with moderate dependence on debt financing.

Overall, the data suggests that the company undertook substantial borrowing at specific intervals, possibly for strategic investments or capital expenditures, but maintained strong equity growth which tempered leverage ratios. The management appears to balance between debt and equity financing to optimize the capital structure while controlling financial risk.

The data reveals dynamics in the capital structure over multiple quarters, particularly focusing on total debt, stockholders’ equity, and the debt-to-equity ratio, all measured in consistent units to allow period-to-period comparisons.

Total Debt

The total debt, including operating lease liability, demonstrates considerable volatility. Starting from a relatively moderate level near 700 million US dollars, it peaks sharply to over 3.5 billion US dollars in July 2020, indicating a significant increase in leverage or financing requirements during that quarter. Subsequently, it decreases somewhat but remains elevated compared to initial levels until it spikes again dramatically in early 2022, surpassing 7 billion US dollars. After this surge, a gradual decline follows, bringing the total debt down to approximately 6.5 billion by mid-2025. This overall pattern suggests periods of aggressive borrowing or lease obligations punctuated by phases of debt reduction.

Stockholders’ Equity

The equity exhibits a generally upward trajectory throughout the examined quarters. Beginning at roughly 3.6 billion US dollars, equity consistently grows with some fluctuations until reaching a notable high in early 2022 at almost 15.6 billion US dollars. Thereafter, equity maintains a stable range around 16 to 20 billion US dollars through 2023 and into mid-2025. This growth trend indicates accumulation of retained earnings, capital injections, or appreciation in net assets, contributing to a strong equity base relative to debt.

Debt-to-Equity Ratio

The debt-to-equity ratio, calculated including operating lease liabilities, reflects the interplay between the two components and their relative changes. Initially low, around 0.2 or less, the ratio spikes to 0.7 during the mid-2020 quarter, coinciding with the substantial increase in total debt seen at that time. Following this peak, the ratio declines to under 0.5 and remains relatively stable within a 0.33 to 0.48 range through subsequent quarters. This stability despite fluctuations in absolute debt and equity levels indicates a managed balance between financing risk and equity strength, with moderate leverage sustained over the later periods.

In summary, the financial indicators suggest strategic adjustments in borrowing alongside growth in equity capital. The periods of heightened debt, particularly the mid-2020 and early 2022 quarters, stand out as notable inflection points requiring further contextual understanding. Meanwhile, equity growth portrays an increasing shareholder value and capital base, supporting the company’s financial resilience. The maintained debt-to-equity ratio within manageable bounds further implies prudent oversight of leverage in the face of evolving business and financial conditions.

The financial data over the observed periods indicate notable fluctuations and trends in the company's debt and capital structure.

Total Debt

The total debt exhibited considerable volatility throughout the timeline. Initially, debt levels remained relatively low and stable, fluctuating modestly around the 400 million US$ mark from late 2019 to early 2020. Subsequently, a sharp increase occurred in mid-2020, with total debt rising dramatically to over 3.3 billion US$ by July 31, 2020. Following this spike, debt levels decreased somewhat but stayed elevated compared to the initial period, oscillating mostly in the 2 to 2.7 billion US$ range through late 2021. A second, more substantial rise was observed starting in late 2021, with debt peaking above 7 billion US$ by January 31, 2022. After this peak, a gradual downward trend commenced, with total debt declining steadily over the next two years, reaching approximately 6 billion US$ by mid-2025, suggesting progressive debt management or repayment efforts.

Total Capital

Total capital demonstrated a generally upward trajectory across the periods. From a base of around 4 billion US$ in late 2019, capital surged sharply to over 8 billion US$ by mid-2020, coinciding with the increase observed in total debt. The capital base continued to expand, reaching peaks above 23 billion US$ between late 2021 and early 2023. Slight fluctuations occurred thereafter, but overall, the capital levels remained elevated, consistently ranging between 22 billion and 26 billion US$, with a subtle downward adjustment noticed towards mid-2025. This pattern indicates capital growth significantly outpacing initial levels, reflecting potential reinvestment, equity issuance, or asset appreciation.

Debt to Capital Ratio

The debt to capital ratio varied considerably in alignment with shifts in both total debt and total capital. Initially low, around 0.1 in 2019 and early 2020, the ratio surged to approximately 0.4 by mid-2020, reflecting the rapid increase in debt relative to capital. Following this peak, the ratio decreased sharply to near 0.17 by late 2021 and stabilized around 0.3 during early 2022 despite high absolute debt and capital values. Subsequently, a gradual but consistent decline was observed, with the ratio trending down to approximately 0.23 by mid-2025. This indicates a relative reduction in leverage, suggesting improved balance sheet strength and a more conservative capital structure over time.

In summary, the financial data reveal significant episodic surges in debt, notably in mid-2020 and early 2022, which were accompanied by simultaneous increases in total capital. Following these spikes, both total debt and the debt-to-capital ratio demonstrated downward trends, pointing toward active debt management and a strengthening capital position. The overall capital base grew substantially from 2019 levels, implying enhanced financial capacity and possibly improved investor confidence or operational scale. The declining leverage ratio in recent periods suggests the company has been increasingly managing financial risk and maintaining a more balanced capital structure.

The financial data reveals significant fluctuations in total debt levels over the analyzed periods, with notable peaks and troughs indicating shifts in the company's leverage strategy. Initially, total debt remained relatively moderate, ranging between 600 to 700 million USD from late 2019 through early 2020. However, a sharp increase occurred in the third quarter of 2020, with debt reaching approximately 3.59 billion USD, suggesting a substantial borrowing event or accounting adjustment such as operating lease liabilities. Subsequent quarters showed some decline and stabilization around 2.3 to 2.7 billion USD through mid-2021, followed by another pronounced surge in late 2021 and early 2022, with total debt surpassing 7 billion USD. In later periods, total debt exhibited a gradual downward trend, falling back toward the 6.5 to 7 billion USD range by mid-2025.

Total capital, which includes operating lease liabilities, generally followed an upward trajectory with periods of accelerated growth. Initial values hovered around 4.3 to 5.3 billion USD before experiencing a marked increase in mid-2020 to nearly 8.7 billion USD, aligning temporally with the spike in debt. From 2020 onward, the company's capital base roughly doubled, reaching peaks near 24 to 27 billion USD in subsequent years. Despite some oscillations, total capital remained relatively stable around the 23 to 25 billion USD mark from 2022 through mid-2025, indicating sustained capital formation or asset growth over the medium term.

The debt-to-capital ratio illustrates the relationship between debt financing and total capital. Early ratios between 0.11 and 0.17 suggest a conservative leverage position. During the third quarter of 2020, the ratio surged to 0.41, consistent with the large debt increase, reflecting a transient period of higher financial leverage. Following this peak, the ratio moderated, fluctuating approximately between 0.19 to 0.32, indicating somewhat elevated but controlled leverage levels relative to total capital. In the most recent periods, the ratio stabilized around 0.25 to 0.28, suggesting a conscious effort to maintain leverage at a moderate level despite fluctuations in absolute debt and capital values.

Total Debt Trends

Initial moderate levels were disrupted by sharp increases in mid-2020 and late 2021, with subsequent partial retrenchments and stabilization thereafter.

Total Capital Movements

Steady growth overall with notable expansions aligned with debt surges; stabilized at higher levels post-2021, reflecting sustained capital accumulation.

Debt-to-Capital Ratio Dynamics

Moderate early leverage gave way to a significant spike in 2020, then moderated and stabilized in a moderate range, indicating controlled financial risk exposure.

Overall Financial Position

The company demonstrated periods of aggressive financial leveraging, likely near strategic events or investments, followed by phases of consolidation and stabilization of capital structure.

The analysis of financial metrics over the reported periods reveals several significant trends and fluctuations. The total debt exhibits considerable variability, with notable spikes and periods of decline. Initially, total debt remained relatively low and stable, ranging between US$398 million and US$423 million from late 2019 to early 2020. A sharp increase occurred in the quarter ending July 31, 2020, where debt surged dramatically to US$3,369 million, followed by a steady decline over the next several quarters. Another substantial increase was observed beginning in January 2022, peaking above US$7,000 million, then gradually decreasing again heading into 2025.

Total assets display a consistent upward trajectory over the entire timeframe. Starting from US$6,183 million in October 2019, total assets increased substantially, exceeding US$36,000 million by mid-2025. Despite periodic minor declines in some quarters, the overall pattern reflects robust growth in assets, indicating expansion or increased investment.

The debt to assets ratio, which measures leverage, follows a dynamic pattern reflective of the movements in debt and assets. Early periods exhibit a low ratio around 0.05 to 0.07, indicating low leverage. A significant rise to approximately 0.31 in mid-2020 coincides with the debt surge, followed by a gradual reduction over the ensuing quarters. The ratio peaks again near 0.26 in early 2022 during the secondary debt rise, then steadily declines towards 0.16 by mid-2025. This suggests an overall improving leverage position in the later periods, as asset growth outpaces debt accumulation.

Total Debt

Initially low and stable, with a sharp increase in mid-2020, followed by a decrease and a second rise in early 2022, then a gradual decline towards 2025.

Total Assets

Consistent growth over the observed periods, increasing from around US$6 billion to nearly US$37 billion, with minor fluctuations.

Debt to Assets Ratio

Low in the early periods, spiking in mid-2020 and early 2022, then steadily declining toward the end of the timeframe, indicating improved leverage and balance sheet strength.

In summary, the data indicates periods of increased borrowing possibly linked to strategic financing or investment activities, followed by stabilization and reduction in leverage. The asset base has expanded substantially, contributing to overall financial growth. The improved debt to assets ratio in the latter periods highlights enhanced financial stability and potentially effective debt management strategies.

Total Debt (including operating lease liability)

The total debt exhibited significant fluctuation over the reported periods. Starting at $720 million in October 2019, debt decreased slightly through early 2020 before experiencing a sharp increase to $3,590 million by July 2020. This surge was followed by a general decline through mid-2021, reaching around $2,400 million. Subsequently, there was another substantial rise, peaking at approximately $7,600 million in early 2022. From that peak, debt gradually decreased over the following quarters, stabilizing around $6,300 to $6,700 million by mid-2025, with a minor dip to $6,570 million in October 2025.

Total Assets

Total assets demonstrated a strong upward trend throughout the timeframe. Beginning at approximately $6,183 million in late 2019, assets increased steadily, crossing $10,000 million by mid-2020. There was a notable acceleration in growth during late 2021 and early 2022, where assets jumped sharply to above $26,000 million. Despite some minor fluctuations, the upward momentum sustained, culminating in nearly $37,000 million in mid-2025. This growth indicates a significant expansion in the company's asset base over the period.

Debt to Assets Ratio (including operating lease liability)

The debt to assets ratio showed considerable variation consistent with the debt and asset trends. Initially low at 0.12 in late 2019, the ratio declined to 0.08 in April 2020 before a sharp rise to 0.33 by July 2020, reflecting the sudden increase in debt relative to assets. After peaking, the ratio trended downward gradually from late 2020 through mid-2021, settling around 0.16. Another increase occurred approaching early 2022, with the ratio hovering near 0.28. Thereafter, the ratio consistently decreased through to mid-2025, falling below 0.20 and ending at approximately 0.18. This indicates improved leverage management or asset growth outpacing debt increases in the latter periods.

Overall Analysis

The data reveal periods of aggressive debt accumulation, notably around mid-2020 and early 2022, possibly related to strategic investments or restructuring activities. Despite these debt spikes, total assets expanded robustly, which moderated leverage as shown by the fluctuating but ultimately declining debt to assets ratio toward the end of the dataset. The company's balance sheet appears to have strengthened due to asset growth and controlled debt levels, suggesting improved financial stability and prudent capital management during the more recent quarters.

The analysis of the quarterly financial data reveals several key trends in the company's asset base, equity position, and financial leverage over the observed periods.

Total Assets

Total assets display a general upward trajectory from October 2019 through the latest period in July 2025. Starting at approximately US$6.2 billion in late 2019, the assets grow with some fluctuations, reaching over US$36.9 billion by mid-2025. Notably, there is a significant increase during the period from January 2021 to January 2022, where total assets almost double, suggesting major asset acquisitions or valuations increases. After this rapid growth phase, assets stabilize with moderate growth towards the end of the period.

Stockholders’ Equity

Stockholders’ equity also rises markedly over the period. Beginning near US$3.6 billion in October 2019, equity sees steady increases with a pronounced surge between January 2021 and January 2022, closely mirroring the total assets’ pattern. This indicates an infusion of capital, growth in retained earnings, or revaluation gains. Following this surge, equity levels maintain a generally stable course with slight fluctuations, ending around US$19.7 billion in July 2025. The growth in equity suggests strengthening of the company’s net worth and a solid capital base.

Financial Leverage

Financial leverage, calculated as the ratio between total assets and stockholders’ equity, exhibits moderate variability within a range roughly between 1.5 and 1.9 throughout the periods. Initially, leverage peaks at around 2.14 in mid-2020 but then declines to the 1.5–1.7 range in the following quarters, reflecting reduced reliance on debt relative to equity. From 2022 onwards, leverage trends upwards slightly, fluctuating around 1.7 to 1.9, suggesting a cautious increase in use of financing other than equity but maintaining a generally conservative capital structure. The leverage ratio indicates the company sustains a balanced approach to debt and equity financing.

In summary, the company demonstrates strong asset growth coupled with significant increases in equity, particularly around early 2021 to early 2022. Financial leverage remains relatively stable with minor fluctuations, indicating prudent management of capital structure amid expanding asset and equity bases. These trends collectively suggest enhanced financial strength and an expanding scale of operations over the evaluated timeframe.

Earnings before interest and tax (EBIT)

The EBIT values exhibit considerable volatility over the observed periods. Initially, EBIT starts at moderate levels, followed by a sharp increase to a peak of 245 in July 2020, before experiencing a significant decline down to negative 67 in April 2022. Subsequently, there is a recovery trend with values rising back above 3000 in July 2024 and reaching 425 in July 2025. This pattern indicates periodic fluctuations in operational profitability with episodes of both strong growth and substantial downturns.

Interest expense

Interest expenses demonstrate a general increasing trend. Starting from a low single-digit figure of 2 in October 2019, the values increase gradually over time, peaking around the range of 60 to nearly 70 million US dollars from late 2022 onward. This gradual rise suggests either increased borrowing or higher interest rates impacting the cost of debt financing.

Interest coverage ratio

The interest coverage ratio, calculated as EBIT divided by interest expense, shows a distinctive downward trend. Early ratios are extremely high, indicating strong ability to cover interest from operating earnings. However, the ratio steadily decreases from over 150 to about 13-20 in the most recent periods. This declining trend points to a weakening buffer in earnings relative to interest obligations, potentially reflecting the volatility and declines in EBIT combined with rising interest expenses.

Overall insights

The financial data reveals that operational profitability as measured by EBIT is inconsistent with marked fluctuations, including instances of negative EBIT indicating operational losses. Concurrently, the cost of debt service has increased moderately. The declining interest coverage ratio signals a growing risk in meeting interest expenses purely from earnings, highlighting a potential area for financial attention in managing costs and sustaining profitability.