Palo Alto Networks Inc (PANW)

Current ratio

		Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020
Total current assets	US$ in thousands	6,849,700	6,048,000	6,414,900	4,647,300	5,129,200
Total current liabilities	US$ in thousands	7,682,700	7,737,500	8,306,300	5,116,700	2,691,700
Current ratio		0.89	0.78	0.77	0.91	1.91

July 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $6,849,700K ÷ $7,682,700K
= 0.89

The current ratio of Palo Alto Networks Inc has fluctuated over the past five years, indicating changes in the company's short-term liquidity position. The ratio was 0.89 as of July 31, 2024, showing an improvement compared to the previous year but still below 1. This suggests that the company may have some difficulty meeting its short-term obligations with its current assets alone. However, it is worth noting that the current ratio has been below 1 for the past three years, which may raise concerns about the company's ability to cover its current liabilities efficiently. Further analysis of the company's liquidity and working capital management practices may be necessary to address this ongoing trend.