Palo Alto Networks Inc (PANW)

Inventory turnover

		Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019
Cost of revenue (ttm)	US$ in thousands	5,655,100	5,475,200	5,345,200	5,079,100	5,006,300	4,898,600	4,755,000	4,582,600	4,399,500	4,182,700	3,978,100	3,783,300	3,537,600	3,303,800	3,146,600	2,980,000	2,873,400	2,778,100	2,650,100	2,538,700
Inventory	US$ in thousands	0	—	0	328,700	339,200	317,300	313,400	—	0	—	—	—	—	—	—	—	—	—	—	—
Inventory turnover		—	—	—	15.45	14.76	15.44	15.17	—	—	—	—	—	—	—	—	—	—	—	—	—

July 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,655,100K ÷ $0K
= —

The inventory turnover ratio for Palo Alto Networks Inc has been consistently high and relatively stable over the past few quarters, averaging around 15. The inventory turnover ratio measures how efficiently a company manages its inventory by showing how many times the inventory is sold and replaced over a certain period.

A high and stable inventory turnover ratio suggests that Palo Alto Networks Inc is efficiently managing its inventory levels, minimizing excess or obsolete inventory that could tie up capital. This can lead to cost savings and improved cash flow. However, it is important to note that a very high inventory turnover ratio could also indicate the risk of stockouts if demand exceeds supply.

Overall, the inventory turnover ratio analysis indicates that Palo Alto Networks Inc has been effectively managing its inventory to support its operations and financial performance.