Palo Alto Networks Inc (PANW)
Total asset 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 |
| Total assets | US$ in thousands | 23,576,200 | 19,990,900 | 14,501,100 | 12,253,600 | 10,241,600 |
| Total asset turnover | 0.39 | 0.40 | 0.48 | 0.45 | 0.42 |
July 31, 2025 calculation
Total asset turnover = Revenue ÷ Total assets
= $9,221,500K ÷ $23,576,200K
= 0.39
The total asset turnover ratio of Palo Alto Networks Inc. demonstrates a general upward trend over the period from July 31, 2021 to July 31, 2023, with values increasing from 0.42 to 0.48. This indicates that the company's efficiency in utilizing its assets to generate revenue improved during this timeframe. The ratio reached its peak at 0.48 in July 2023, reflecting increased efficiency in asset utilization.
However, subsequent data points show a decline in the ratio, falling to 0.40 by July 31, 2024, and further decreasing to 0.39 by July 31, 2025. This downward trend suggests a reduction in the company's asset efficiency in generating sales, possibly indicating challenges such as asset underutilization or shifts in operational focus.
Overall, the ratio's trajectory reflects initial improvements in asset utilization culminating in a peak in mid-2023, followed by a decline in subsequent years. This pattern warrants further analysis to understand the underlying factors influencing asset efficiency during this period.