Palo Alto Networks Inc (PANW)

Total asset 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
Total assets	US$ in thousands	19,990,900	14,501,100	12,253,600	10,241,600	9,065,400
Total asset turnover		0.40	0.47	0.45	0.40	0.37

July 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $8,027,700K ÷ $19,990,900K
= 0.40

Total asset turnover measures how efficiently a company generates sales from its assets. A higher ratio indicates better asset utilization. Palo Alto Networks Inc's total asset turnover has fluctuated over the past five years, ranging from 0.37 to 0.47. The ratio peaked in July 2023 at 0.47 before declining slightly in the subsequent years. The latest ratio of 0.40 suggests that for every dollar of assets, the company generates $0.40 in sales. The trend indicates that the company's asset utilization has been relatively stable, with some variability. Further analysis and comparison with industry benchmarks could provide more insights into the company's efficiency in utilizing its assets to generate revenue.