Palo Alto Networks Inc (PANW)

Receivables 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
Revenue (ttm)	US$ in thousands	8,027,700	7,777,700	7,501,800	7,176,900	6,857,600	6,458,200	6,127,200	5,796,400	5,475,900	5,105,500	4,757,600	4,420,000	4,087,400	3,831,400	3,649,600	3,472,400	3,317,900	3,184,700	3,040,400	2,934,500
Receivables	US$ in thousands	3,344,500	2,287,700	2,341,800	1,858,900	2,852,000	1,688,800	1,449,900	1,391,800	2,253,800	1,357,400	1,065,100	916,000	1,319,400	798,200	695,700	686,500	1,037,100	668,800	540,300	499,200
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

July 31, 2024 calculation

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

The receivables turnover ratio for Palo Alto Networks Inc has displayed some fluctuations over the past several quarters. The ratio indicates the efficiency with which the company is able to collect outstanding receivables from its customers during a given period.

From the data provided, there is variability in the receivables turnover ratio, ranging from a low of 2.40 to a high of 5.88. A higher turnover ratio generally signifies that the company is more effective in collecting payments from customers, while a lower ratio may indicate potential issues with collecting receivables in a timely manner.

The trend shows some volatility in the receivables turnover ratio, with peaks and troughs observed across different periods. For example, in some quarters such as Jan 31, 2022, and Jan 31, 2021, there is a notable increase in the ratio, indicating improved efficiency in collecting receivables. Conversely, in other quarters like Jul 31, 2020, and Jul 31, 2023, the ratio declines, suggesting potential challenges in collecting outstanding payments.

It is important for investors and stakeholders to monitor the receivables turnover ratio of Palo Alto Networks Inc consistently to assess the company's ability to efficiently manage its accounts receivable and maintain healthy cash flows. Analyzing trends in the ratio over time can provide insights into the company's credit policies, collection processes, and overall financial health.