Palo Alto Networks Inc (PANW)

Working capital 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 current assets	US$ in thousands	6,849,700	5,918,800	6,446,700	6,477,600	6,048,000	6,413,600	5,405,800	5,733,500	6,414,900	5,697,600	4,868,600	4,839,100	4,647,300	4,140,900	4,275,800	4,300,900	5,129,200	3,014,000	3,978,200	3,649,800
Total current liabilities	US$ in thousands	7,682,700	7,084,800	7,765,500	7,513,400	7,737,500	8,641,200	8,475,100	8,195,100	8,306,300	7,677,200	7,406,400	7,144,400	5,116,700	3,007,300	4,376,300	2,635,100	2,691,700	2,335,700	2,239,500	2,051,600
Working capital turnover		—	—	—	—	—	—	—	—	—	—	—	—	—	3.38	—	2.08	1.36	4.70	1.75	1.84

July 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $8,027,700K ÷ ($6,849,700K – $7,682,700K)
= —

The working capital turnover ratio for Palo Alto Networks Inc has shown some fluctuations over the past five years. The ratio was not available for the recent quarters as indicated in the provided data. However, based on historical data, the working capital turnover ratio was 1.36 in October 2020, indicating that the company generated $1.36 in revenue for every dollar of working capital invested.

The ratio increased to 4.70 in January 2020, suggesting a significant improvement in efficiency in generating revenue from working capital. However, this was followed by a decline in the ratio to 1.75 in April 2020 and 1.84 in July 2020, indicating a decrease in the company's ability to efficiently utilize its working capital to generate revenue during those quarters.

In January 2021, there was a notable improvement in the working capital turnover ratio, reaching 3.38, showing that the company was able to generate $3.38 in revenue for every dollar of working capital invested. This improvement was sustained in April 2021.

Overall, the fluctuations in Palo Alto Networks Inc's working capital turnover ratio over the past few years suggest varying efficiency levels in managing and utilizing its working capital to generate revenue. Further analysis and comparison to industry benchmarks would provide a better understanding of the company's working capital management performance.