Palo Alto Networks Inc (PANW)
Receivables turnover
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,221,500 | 8,027,500 | 6,892,700 | 5,501,500 | 4,256,100 |
| Receivables | US$ in thousands | 3,679,600 | 3,344,500 | 2,852,000 | 2,142,500 | 1,240,400 |
| Receivables turnover | 2.51 | 2.40 | 2.42 | 2.57 | 3.43 |
July 31, 2025 calculation
Receivables turnover = Revenue ÷ Receivables
= $9,221,500K ÷ $3,679,600K
= 2.51
The receivables turnover ratio for Palo Alto Networks Inc. demonstrates a declining trend over the analyzed period from July 31, 2021, to July 31, 2024, followed by a slight increase in 2025. Specifically, the ratio decreased from 3.43 in 2021 to 2.57 in 2022, indicating a reduction in the company's efficiency in collecting receivables. This downward movement continued, with the ratio reaching 2.42 in 2023 and slightly declining further to 2.40 in 2024. The marginal increase to 2.51 in 2025 suggests a potential stabilization or minor improvement in receivables management.
A decreasing receivables turnover ratio generally implies that the company is taking longer to collect its accounts receivable, which could indicate loosened credit policies, collection challenges, or changes in customer payment behavior. Conversely, the slight uptick in 2025 may reflect efforts to enhance receivables collection procedures or improved customer payment performance. Overall, the trend indicates a gradual elongation in the collection period, which may have implications for the company's cash flow management and liquidity position.