Palo Alto Networks Inc (PANW)
Payables turnover
| Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,451,600 | 2,346,300 | 2,240,600 | 2,140,500 | 2,059,200 | 1,992,300 | 1,953,500 | 1,920,600 | 1,909,700 | 1,895,200 | 1,860,900 | 1,800,000 | 1,718,700 | 1,585,300 | 1,475,400 | 1,377,700 | 1,274,900 | 1,206,400 | 1,134,100 | 1,059,600 |
| Payables | US$ in thousands | 232,200 | 234,800 | 149,300 | 211,600 | 116,300 | 108,900 | 178,800 | 131,800 | 132,300 | 91,600 | 128,300 | 125,900 | 128,000 | 108,000 | 120,400 | 95,300 | 56,900 | 71,800 | 44,700 | 48,500 |
| Payables turnover | 10.56 | 9.99 | 15.01 | 10.12 | 17.71 | 18.29 | 10.93 | 14.57 | 14.43 | 20.69 | 14.50 | 14.30 | 13.43 | 14.68 | 12.25 | 14.46 | 22.41 | 16.80 | 25.37 | 21.85 |
July 31, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,451,600K ÷ $232,200K
= 10.56
The payables turnover ratio for Palo Alto Networks Inc exhibits notable fluctuations over the analyzed period, reflecting varying efficiency in managing trade payables. At the beginning of the period, the ratio stood at 21.85 as of October 31, 2020, indicating a relatively high frequency of settling (or turning over) accounts payable within a year. This ratio increased to a peak of 25.37 in January 2021, suggesting an improvement in payables management or possibly faster payment cycles during this period.
Subsequently, the ratio declined significantly to 16.80 by April 2021, followed by a slight recovery to 22.41 in July 2021. However, from October 2021 onwards, a downward trend is evident, with the ratio dropping to 14.46, then further decreasing to 12.25 in January 2022, and maintaining a relatively stable range around 14-15 through mid-2022. This period indicates a lengthening in the time taken to settle payables, possibly due to extended payment terms or cash flow management strategies.
Between late 2022 and early 2023, the ratio shows signs of modest fluctuation, remaining within the 14-20 range, reaching a high of 20.69 in April 2023 before decreasing again to roughly 14.43 in July 2023. Moving into late 2023 and early 2024, the ratio dips further to a low of 10.12 in October 2024, reflecting a potential extension in payment periods. The subsequent quarters show some recovery, with the ratio rising to approximately 18-19 in April and July 2024, before culminating at 10.12 in October 2024.
Overall, the trend indicates periods of both strengthening and weakening in payables turnover. The initial high ratios suggest efficient payment practices early on, whereas the subsequent decline signifies longer payable periods, possibly to conserve cash or align with supplier credit terms. The recent low ratios indicate extended payment cycles, which could reflect strategic liquidity management or shifts in credit terms. The variability underscores the company's dynamic approach to managing its trade payables over the analyzed timeframe.