Palo Alto Networks Inc (PANW)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	—	—	—	15.45	14.76	15.44	15.17	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables turnover	2.40	3.40	3.20	3.86	2.40	3.82	4.23	4.16	2.43	3.76	4.47	4.83	3.10	4.80	5.25	5.06	3.20	4.76	5.63	5.88
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
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	3.38	—	2.08	1.36	4.70	1.75	1.84

The inventory turnover ratio for Palo Alto Networks Inc has been relatively stable, ranging between 14.76 and 15.45 over the past few quarters. This indicates that the company has efficiently managed its inventory levels, with a consistent rate of inventory turnover.

The receivables turnover ratio has shown some fluctuations, ranging from 2.40 to 5.88 over the same period. This indicates variability in the company's ability to collect on its receivables, with higher values suggesting faster collections.

The payables turnover ratio has also shown variability, ranging from 29.89 to 70.39. This suggests changes in the company's payment practices to its suppliers, with higher values indicating a quicker turnover of payables.

The working capital turnover ratio has been inconsistent, with values ranging from 1.36 to 4.70. This ratio reflects how efficiently the company is utilizing its working capital to generate sales, with higher values indicating better efficiency in utilizing its resources.

Overall, Palo Alto Networks Inc has demonstrated varying levels of efficiency in managing its inventory, receivables, payables, and working capital turnover over the analyzed period.

Average number of days

		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
Days of inventory on hand (DOH)	days	—	—	—	23.62	24.73	23.64	24.06	—	—	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	152.07	107.36	113.94	94.54	151.80	95.45	86.37	87.64	150.23	97.04	81.71	75.64	117.82	76.04	69.58	72.16	114.09	76.65	64.86	62.09
Number of days of payables	days	7.51	7.26	12.21	9.47	9.65	6.83	9.85	10.03	10.62	9.42	11.05	9.19	5.87	7.93	5.19	5.94	8.08	6.87	7.63	10.74

Days of inventory on hand (DOH) provides insights into how efficiently Palo Alto Networks manages its inventory. The decreasing trend in recent quarters indicates that the company is holding inventory for a shorter period, which could signify effective inventory management and better liquidity.

Days of sales outstanding (DSO) measures how quickly Palo Alto Networks collects its accounts receivable. The fluctuating DSO over time suggests some inconsistencies in the company's credit policies or the collection efficiency. A lower DSO indicates a faster collection of receivables, while a higher DSO implies delays in receiving payments from customers.

Number of days of payables indicates how long Palo Alto Networks takes to pay its suppliers. The stable or slightly increasing trend in the number of days of payables suggests consistent payment practices. A longer period of payables may indicate the company's ability to negotiate favorable credit terms with suppliers, positively impacting cash flow.

Overall, a detailed analysis of these activity ratios indicates that Palo Alto Networks is making efforts to efficiently manage its working capital and improve its cash flow position. Monitoring these ratios over time can provide valuable insights into the company's operational efficiency and financial health.

Long-term

	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
Fixed asset turnover	22.23	22.20	21.29	20.35	19.34	18.90	17.78	16.39	15.30	14.36	13.12	13.63	12.84	11.87	11.04	10.28	9.53	8.92	9.76	9.27
Total asset turnover	0.40	0.43	0.41	0.48	0.47	0.46	0.47	0.46	0.45	0.46	0.46	0.42	0.40	0.40	0.38	0.40	0.37	0.49	0.42	0.43

The fixed asset turnover ratio for Palo Alto Networks Inc has shown consistent improvement over the past five years, indicating that the company is generating more revenue relative to its investment in fixed assets. This suggests efficient utilization of fixed assets to generate sales. The ratio has increased from 9.27 in October 2019 to 22.23 in July 2024, reflecting a significant enhancement in operational efficiency.

On the other hand, the total asset turnover ratio has fluctuated slightly over the same period but generally remains at a relatively low level. This may suggest that the company's total assets are not being as effectively utilized to generate sales compared to its fixed assets. However, there was a notable improvement from October 2019 to October 2023, with the ratio increasing from 0.37 to 0.48 before declining slightly to 0.40 in July 2024.

Overall, the fixed asset turnover ratio indicates a commendable operational efficiency in generating revenue from the company's fixed assets, while the total asset turnover ratio reflects a more moderate efficiency in utilizing all assets to generate sales. Further analysis and comparison to industry benchmarks could provide more insights into Palo Alto Networks Inc's long-term activity ratios performance.