Interested In Intuit Inc. (NASDAQ:INTU)? Here's What Its Recent Performance Looks Like
Examining Intuit Inc.'s (NasdaqGS:INTU) past track record of performance is a valuable exercise for investors. It enables us to understand whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess INTU's latest performance announced on 31 October 2019 and weigh these figures against its longer term trend and industry movements.
See our latest analysis for Intuit
How INTU fared against its long-term earnings performance and its industry
INTU's trailing twelve-month earnings (from 31 October 2019) of US$1.6b has jumped 16% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 22%, indicating the rate at which INTU is growing has slowed down. What could be happening here? Well, let's look at what's transpiring with margins and whether the whole industry is experiencing the hit as well.
In terms of returns from investment, Intuit has invested its equity funds well leading to a 43% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 25% exceeds the US Software industry of 6.6%, indicating Intuit has used its assets more efficiently. However, its return on capital (ROC), which also accounts for Intuit’s debt level, has declined over the past 3 years from 69% to 42%.
What does this mean?
Intuit's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I suggest you continue to research Intuit to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for INTU’s future growth? Take a look at our free research report of analyst consensus for INTU’s outlook.
Financial Health: Are INTU’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 October 2019. This may not be consistent with full year annual report figures.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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