Palo Alto Networks Inc (PANW)
Payables turnover
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,287,600 | 2,059,200 | 1,909,700 | 1,718,700 | 1,274,900 |
| Payables | US$ in thousands | 232,200 | 116,300 | 132,300 | 128,000 | 56,900 |
| Payables turnover | 9.85 | 17.71 | 14.43 | 13.43 | 22.41 |
July 31, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,287,600K ÷ $232,200K
= 9.85
The payables turnover ratio for Palo Alto Networks Inc. over the specified periods demonstrates notable fluctuations that reflect changes in the company's management of its accounts payable relative to its cost of goods sold (COGS) or similar operating expenses.
As of July 31, 2021, the payables turnover ratio stood at 22.41, indicating that the company paid off its payables approximately 22.4 times during that fiscal year, signifying a relatively efficient or prompt payment cycle. In the subsequent year, this ratio decreased markedly to 13.43, suggesting a lengthening in the payment cycle or a strategic shift in the company's accounts payable management, which could be due to extended credit terms negotiated with suppliers, changes in cash flow management, or other operational factors.
By July 31, 2023, the ratio modestly increased to 14.43, indicating a slight improvement in payables turnover, but it remained significantly below the level observed in 2021. The upward trend continued into July 31, 2024, with the ratio reaching 17.71, approaching the earlier levels and implying a trend toward more rapid payment cycles or improved efficiency in managing accounts payable.
However, by July 31, 2025, the ratio declined sharply to 9.85. This drop may signal a deliberate strategic extension of payment periods, increased reliance on supplier credit, or potential liquidity management considerations affecting the company's ability or willingness to pay promptly.
Overall, these variations suggest that Palo Alto Networks Inc. has experienced periods of both tightening and loosening of its payables management. The initial high ratio reflects a more aggressive or prompt payment approach, which has generally decreased over time, with recent figures indicating a trend towards lengthening payment cycles. These patterns could be driven by operational, strategic, or financial considerations, and understanding their implications would require further analysis of the company's cash flows, supplier relationships, and overall financial strategy.