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  "documentTitle": "Intuit Inc. (INTU)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-09-20 00:00:00",
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  "notes": "The slide uses a red arrow to visually isolate the CEO's tenure and a red box to highlight the WACC threshold.",
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      "text": "Goodarzi Serving as CEO",
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      "text": "Bloomberg WACC: 11.5%",
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      "text": "Bloomberg calculates a WACC for Intuit of 11.5%. Thus, the Company's returns on capital have fallen short of its WACC the past three years.",
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      "text": "Intuit Annual Return on Invested Capital (1) Over Last Eleven Fiscal Years",
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      "text": "Bloomberg calculates a WACC for Intuit of 11.5%. Thus, the Company's returns on capital have fallen short of its WACC the past three years.",
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      "text": "Return on Invested Capital (ROIC): 10%",
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      "text": "There was a time when a conservatively-managed Intuit generated excellent returns on invested capital (ROIC) for shareholders, but that time is no more. Since Sasan Goodarzi was named CEO during FY 2019, ROIC has plummeted 74% from 38% in FY 2018 to just 10% in FY 2024. We question why investors continue to buy into the current management team when they have demonstrated such a poor track record of capital allocation.",
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      "text": "(1) ROIC defined as period EBIT * (1 - 0.375) divided by average period beginning and end total capital (defined as total common equity + current portion of leases + long term debt + long term leases)\nSource: S&P Capital IQ, Bloomberg, Spruce Point Research",
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      "text": "Intuit's Return On Invested Capital Has Plummeted Under CEO Goodarzi's Tenure",
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