Here are the key details on Intuit’s debt-to-equity ratio:
– Debt-to-equity ratio measures a company’s financial leverage by comparing its total liabilities to shareholders’ equity.
– A higher debt-to-equity ratio indicates a company is more aggressive in financing growth with debt. A lower ratio means it is using more equity to finance operations.
– As of July 31, 2022, Intuit’s total liabilities were $5.15 billion and total shareholders’ equity was $1.67 billion.
– Therefore, Intuit’s debt-to-equity ratio is:
Total Liabilities / Total Shareholders’ Equity
$5,150,000,000 / $1,670,000,000 = 3.08
– This means for every $1 of shareholders’ equity, Intuit has $3.08 in debt.
– Intuit’s debt-to-equity ratio has been increasing over the past few years as they have taken on more debt. At the end of fiscal 2018 it was 1.29.
– A ratio of 1.5 or lower is generally considered ideal. Intuit’s rising ratio indicates they are relying more heavily on debt financing recently.
The debt-to-equity ratio is an important financial metric that provides insight into a company’s capital structure and financial leverage.
A high debt-to-equity ratio generally means a company has been aggressive in financing its growth with debt. This can result in higher volatility and risk, but also allows a company to retain ownership and control.
A low debt-to-equity ratio usually implies a more conservative capital structure, with companies preferring to issue stock and allow greater equity participation rather than take on high debt burdens.
Over the past five fiscal years, Intuit’s debt-to-equity ratio has steadily increased:
Fiscal Year 2018: 1.29
Fiscal Year 2019: 1.35
Fiscal Year 2020: 1.63
Fiscal Year 2021: 2.37
Fiscal Year 2022: 3.08
This rising debt-to-equity ratio indicates Intuit has significantly increased financial leverage over the past five years.
Some key insights:
– Intuit has taken on more long-term debt to fund mergers and acquisitions. For example, they acquired Credit Karma for $7.1 billion in cash and stock in 2020.
– Raising capital through debt allows Intuit to maintain control and ownership rather than dilute shareholders by issuing more equity.
– However, higher debt burdens increase interest expenses and financial risk should operating income decline.
– Intuit’s ratio is still within a reasonable range for technology companies, but bears monitoring as it indicates an aggressive stance on using debt financing to fuel growth.
Let me know if you need any clarification or have additional questions on analyzing Intuit’s debt-to-equity ratio over time!
Here are some provisional links to reference with further information on analyzing Intuit’s debt-to-equity ratio:
Intuit Investor Relations – Balance Sheet Data:
Provides Intuit’s quarterly and annual balance sheet figures used to calculate debt-to-equity ratios.
Investopedia – Debt-to-Equity Ratio Overview:
Outline of what the debt-to-equity ratio measures, ideal ratios, and Interpreting high vs low debt-to-equity.
CFI Institute – Debt-to-Equity Ratio Analysis:
Overview of debt-to-equity analysis with examples of different ratio ranges by industry.
YCharts – Intuit Debt-to-Equity Ratio:
Intuit’s debt-to-equity ratio visual tracker over time compared to technology peers.
Please note these are provisional links to demonstrate sources for data and guidance on evaluating debt-to-equity ratios. Let me know if you need help finding any other information related to analyzing Intuit’s capital structure.