Palo Alto Networks Inc (PANW)
Receivables turnover
| Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 9,221,500 | 8,874,700 | 8,570,500 | 8,288,200 | 8,027,500 | 7,791,300 | 7,527,400 | 7,207,400 | 6,892,700 | 6,489,900 | 6,155,700 | 5,817,500 | 5,501,500 | 5,170,300 | 4,857,500 | 4,557,500 | 4,256,100 | 3,987,200 | 3,782,700 | 3,582,500 |
| Receivables | US$ in thousands | 3,679,600 | 2,687,300 | 2,250,400 | 1,938,000 | 3,344,500 | 2,287,700 | 2,341,800 | 1,858,900 | 2,852,000 | 1,443,600 | 1,278,100 | 1,238,100 | 2,142,500 | 1,240,600 | 952,200 | 812,100 | 1,240,400 | 766,800 | 669,200 | 675,500 |
| Receivables turnover | 2.51 | 3.30 | 3.81 | 4.28 | 2.40 | 3.41 | 3.21 | 3.88 | 2.42 | 4.50 | 4.82 | 4.70 | 2.57 | 4.17 | 5.10 | 5.61 | 3.43 | 5.20 | 5.65 | 5.30 |
July 31, 2025 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $9,221,500K ÷ $3,679,600K
= 2.51
The receivables turnover ratios of Palo Alto Networks Inc. over the specified periods depict notable fluctuations indicative of changing efficiency in collecting accounts receivable. Initially, the ratio was 5.30 as of October 31, 2020, and it exhibited a generally upward trend, reaching a peak of 5.61 by October 31, 2021. This suggests an improvement in receivables collection efficiency during this period.
However, starting from April 30, 2021, there was a decline in the ratio, culminating at 3.43 by July 31, 2021, which represents a significant decrease from the previous peak. Post this decline, the ratio showed some recovery, reaching 4.82 as of January 31, 2023, but then experienced further decreases, with a notable low of 2.40 on July 31, 2024. Subsequently, the ratio increased again to 4.28 in October 2024 before declining slightly to 3.81 by January 31, 2025.
This pattern indicates periods of both improvement and deterioration in receivables management. Higher ratios, such as those observed near 5.61 in October 2021, suggest more efficient collections, while significant dips to values around 2.4 to 3.5 could reflect challenges in receivables management or changes in credit policies. The overall trend portrays variability in collection efficiency rather than a consistent pattern, which may be attributable to changes in sales volume, credit terms, customer mix, or other operational factors affecting the company’s receivables.
In summary, the receivables turnover ratios highlight the company's fluctuating ability to collect accounts receivable efficiently, with periods of both strength and decline, emphasizing the importance of monitoring these metrics for financial and operational insights.
See also:
Palo Alto Networks Inc Receivables Turnover (Quarterly Data)