Palo Alto Networks Inc (PANW)

Total asset 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
Total assets	US$ in thousands	19,990,900	17,930,800	18,292,000	14,808,500	14,501,100	14,170,500	13,163,400	12,543,800	12,253,600	11,100,000	10,400,500	10,426,400	10,241,600	9,562,100	9,488,400	8,726,500	9,065,400	6,501,800	7,184,100	6,824,800
Total asset turnover		0.40	0.43	0.41	0.48	0.47	0.46	0.47	0.46	0.45	0.46	0.46	0.42	0.40	0.40	0.38	0.40	0.37	0.49	0.42	0.43

July 31, 2024 calculation

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

Total asset turnover is a financial ratio that measures a company's ability to generate sales revenue from its assets. For Palo Alto Networks Inc, the total asset turnover ratio has fluctuated over the past several quarters, ranging from 0.37 to 0.49. This indicates that the company has been able to generate varying levels of sales relative to its total assets.

In general, a higher total asset turnover ratio is preferred as it indicates that the company is effectively utilizing its assets to generate sales. A lower ratio may suggest inefficiencies in asset utilization or potentially an over-investment in assets relative to sales generated.

Palo Alto Networks Inc's total asset turnover ratio has shown some volatility, possibly influenced by factors such as changes in sales volume, asset management strategies, or business operations. It would be important to further investigate the underlying reasons for the fluctuations in the total asset turnover ratio to assess the company's overall efficiency in asset utilization.