Palo Alto Networks Inc (PANW)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	1,535,200	1,373,700	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	2,958,000	1,484,700	2,000,000	1,263,700
Short-term investments	US$ in thousands	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	789,800	554,100	1,133,900	1,597,500
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
Cash ratio		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	1.39	0.87	1.40	1.39

July 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,535,200K + $1,043,600K) ÷ $7,682,700K
= 0.34

The cash ratio of Palo Alto Networks Inc has shown fluctuation over the past few years, ranging from a low of 0.31 to a high of 1.40. The cash ratio measures the proportion of a company's current assets that are in cash or cash equivalents, providing insight into its ability to cover its short-term liabilities with its most liquid assets.

The trend of the cash ratio indicates that the company has generally maintained a healthy level of liquidity, with the ratio hovering around 0.40 to 0.50 in recent periods. A cash ratio above 1 indicates that the company has more cash on hand than its short-term liabilities, which demonstrates a strong liquidity position.

In the latest reported period, the cash ratio of 0.34 suggests that the company may have a lower level of cash relative to its short-term obligations compared to previous periods. It is important to assess the company's overall liquidity position, taking into account other liquidity ratios and financial metrics, to get a comprehensive understanding of its financial health.