Palo Alto Networks Inc (PANW)

Payables 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
Payables	US$ in thousands	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	63,600	52,300	55,400	74,700
Payables turnover		48.63	50.28	29.89	38.54	37.84	53.48	37.06	36.40	34.37	38.73	33.04	39.70	62.17	46.01	70.39	61.44	45.18	53.12	47.84	33.99

July 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,655,100K ÷ $116,300K
= 48.63

The payables turnover ratio for Palo Alto Networks Inc has shown some fluctuations over the past few years, ranging from a low of 29.89 to a high of 70.39.

A higher payables turnover ratio indicates that the company is paying its creditors more frequently, potentially reflecting strong liquidity management or negotiating power to secure favorable credit terms. On the other hand, a lower ratio may suggest that the company is taking longer to pay its suppliers, which could strain relationships or indicate cash flow challenges.

Overall, the trend in Palo Alto Networks Inc's payables turnover ratio shows variability but generally remains at levels that indicate effective management of its accounts payable and relationships with suppliers. It is important for the company to monitor this ratio continuously to ensure smooth operations and financial health.