Palo Alto Networks Inc (PANW)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,268,600 | 2,383,400 | 2,226,300 | 2,282,800 | 1,535,200 | 1,381,900 | 1,782,500 | 2,491,400 | 1,135,300 | 1,992,900 | 1,346,300 | 2,067,200 | 2,118,500 | 2,419,900 | 1,922,700 | 2,272,900 | 1,874,200 | 1,886,100 | 2,113,200 | 2,142,000 |
| Short-term investments | US$ in thousands | 634,600 | 916,800 | 1,006,600 | 1,108,200 | 1,043,600 | 1,516,700 | 1,588,500 | 1,402,400 | 1,254,700 | 1,965,300 | 2,000,600 | 1,736,500 | 1,516,000 | 1,454,700 | 1,417,600 | 1,188,500 | 1,026,900 | 1,059,300 | 1,058,000 | 1,075,600 |
| Total current liabilities | US$ in thousands | 7,988,000 | 7,705,600 | 7,552,200 | 7,402,700 | 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 |
| Cash ratio | 0.36 | 0.43 | 0.43 | 0.46 | 0.34 | 0.41 | 0.43 | 0.52 | 0.31 | 0.46 | 0.39 | 0.46 | 0.44 | 0.50 | 0.45 | 0.48 | 0.57 | 0.98 | 0.72 | 1.22 |
July 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,268,600K
+ $634,600K)
÷ $7,988,000K
= 0.36
The cash ratio of Palo Alto Networks Inc., as depicted in the provided data, demonstrates notable fluctuation over the analyzed period. At the fiscal quarter ending October 31, 2020, the cash ratio was relatively high at 1.22, indicating a strong position wherein the company's cash and cash equivalents exceeded its current liabilities. Subsequently, a decline is observed, with the ratio decreasing to 0.72 by January 31, 2021, and then rising again to 0.98 by April 30, 2021.
From mid-2021 onward, a declining trend in the cash ratio becomes evident, reaching a low of approximately 0.31 during the quarter ending July 31, 2023. This indicates that the company's cash holdings relative to current liabilities have reduced over time, suggesting an increasing reliance on non-cash current assets or other forms of liquidity. Nevertheless, in the latest period available, the cash ratio improves slightly to 0.46 as of October 31, 2023.
Throughout the periods examined, the cash ratio rarely approaches or exceeds 1, with the majority of quarters reflecting ratios between approximately 0.31 and 0.52. This suggests that while the company maintains a healthy liquidity buffer, it does not possess excess cash to cover all current liabilities solely on hand, a common characteristic in technology firms that may prioritize working capital investments over holding large cash reserves.
Overall, the observed trend indicates a gradual decline in the cash ratio over the analyzed timeframe, highlighting a possible shift towards a more leveraged or asset-diversified liquidity structure, while still maintaining a moderate level of liquidity coverage.