Palo Alto Networks Inc (PANW)

Receivables turnover

		Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020
Revenue	US$ in thousands	8,027,700	6,857,600	5,475,900	4,087,400	3,313,000
Receivables	US$ in thousands	3,344,500	2,852,000	2,253,800	1,319,400	1,037,100
Receivables turnover		2.40	2.40	2.43	3.10	3.19

July 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $8,027,700K ÷ $3,344,500K
= 2.40

The receivables turnover for Palo Alto Networks Inc has shown a relatively stable trend over the past five years. It was 2.40 in both 2024 and 2023, indicating that on average, the company collected its accounts receivable every 2.4 times during the year.

Compared to the previous years, the receivables turnover ratio was slightly higher at 2.43 in 2022. However, it experienced a notable decline in 2021, dropping to 3.10, and continued to decrease to 3.19 in 2020.

A lower turnover ratio suggests that the company took longer to collect its accounts receivable, which could potentially raise concerns about the efficiency of its credit policies or the creditworthiness of its customers. It's worth noting that a consistently low or decreasing receivables turnover ratio can indicate ineffective credit management or potential liquidity issues.

Overall, while the stability in recent years is a positive sign, a closer look into the underlying reasons for the fluctuations in earlier years would provide more insights into Palo Alto Networks Inc's receivables management efficiency.