Gross Margin % is calculated as gross profit divided by its revenue. Intuit's Gross Profit for the
three
months ended in Jul. 2024 was $2,401 Mil. Intuit's Revenue for the
three
months ended in Jul. 2024 was $3,184 Mil. Therefore, Intuit's Gross Margin % for the quarter that ended in Jul. 2024 was 75.41%.
Warning Sign:
Intuit Inc gross margin has been in long-term decline. The average rate of decline per year is -1.2%.
The historical rank and industry rank for Intuit's Gross Margin % or its related term are showing as below:
INTU'
s Gross Margin % Range Over the Past 10 Years
Min: 78.13 Med: 82.62 Max: 84.41
Current: 78.72
During the past 13 years, the highestGross Margin % of Intuit was 84.41%. The lowest was 78.13%. And the median was 82.62%.
INTU's Gross Margin % is ranked better than 87.25% of 2628
companies
in the Software industry
Industry Median: 41.375
vs INTU: 78.72
Intuit had a gross margin of 75.41% for the quarter that ended in Jul. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Intuit was -1.20% per year.
Intuit Gross Margin % Historical Data
The historical data trend for Intuit's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Application subindustry, Intuit's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Intuit's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, Intuit's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Intuit's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Intuit (NAS:INTU) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Intuit had a gross margin of 75.41% for the quarter that ended in Jul. 2024 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Intuit Gross Margin % Related Terms
Thank you for viewing the detailed overview of Intuit's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Intuit is a provider of small-business accounting software (QuickBooks), personal tax solutions (TurboTax), and professional tax offerings (Lacerte). Founded in the mid-1980s, Intuit controls the majority of US market share for small-business accounting and do-it-yourself tax-filing software.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
INTU has been successfully added to your 