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INTU (Intuit) Financial Strength : 8 (As of Jul. 2024)


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What is Intuit Financial Strength?

Intuit has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Intuit Inc shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Intuit's Interest Coverage for the quarter that ended in Jul. 2024 was 1.39. Intuit's debt to revenue ratio for the quarter that ended in Jul. 2024 was 0.52. As of today, Intuit's Altman Z-Score is 9.35.


Competitive Comparison of Intuit's Financial Strength

For the Software - Application subindustry, Intuit's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution in the Software Industry

For the Software industry and Technology sector, Intuit's Financial Strength distribution charts can be found below:

* The bar in red indicates where Intuit's Financial Strength falls into.



Intuit Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Intuit's Interest Expense for the months ended in Jul. 2024 was $-61 Mil. Its Operating Income for the months ended in Jul. 2024 was $85 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jul. 2024 was $5,997 Mil.

Intuit's Interest Coverage for the quarter that ended in Jul. 2024 is

Interest Coverage=-1*Operating Income (Q: Jul. 2024 )/Interest Expense (Q: Jul. 2024 )
=-1*85/-61
=1.39

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Intuit's Debt to Revenue Ratio for the quarter that ended in Jul. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Jul. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(570 + 5997) / 12736
=0.52

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Intuit has a Z-score of 9.35, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 9.35 is strong.

* 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.


Intuit  (NAS:INTU) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Intuit has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Intuit Financial Strength Related Terms

Thank you for viewing the detailed overview of Intuit's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Intuit Business Description

Address
2700 Coast Avenue, Mountain View, CA, USA, 94043
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.
Executives
Laura A Fennell officer: VP, General Counsel, Corp. Sec C/O INTUIT INC., PO BOX 7850, MOUNTAIN VIEW CA 94039-7850
Eve B Burton director 770 BROADWAY, NEW YORK NY 10003
Scott D Cook director, officer: Chairman, Executive Committee C/O INTUIT INC, 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
Alex G. Balazs officer: EVP, Chief Technology Officer C/O INTUIT INC., 2700 COAST AVE, MOUNTAIN VIEW CA 94043
Sandeep Aujla officer: EVP and CFO C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
Kerry J Mclean officer: SVP, General Counsel C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
Mark P. Notarainni officer: EVP, Consumer Group C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
Lauren D Hotz officer: VP, Chief Accounting Officer C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
Raul Vazquez director 500 STAPLES DR., FRAMINGHAM MA 01702
Sasan K Goodarzi officer: Senior Vice President C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
Marianna Tessel officer: EVP, Chief Technology Officer C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
James Alexander Chriss officer: EVP and GM SBSEG C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
Michelle M Clatterbuck officer: EVP and CFO C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
Ryan Roslansky director C/O GODADDY INC., 2155 E. GODADDY WAY, TEMPE AZ 85284
Eric S. Yuan director C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113