Palo Alto Networks Inc (PANW)

Current 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
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
Current ratio		0.89	0.84	0.83	0.86	0.78	0.74	0.64	0.70	0.77	0.74	0.66	0.68	0.91	1.38	0.98	1.63	1.91	1.29	1.78	1.78

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 several quarters. It was below 1 in the most recent quarter, indicating that the company's current assets may not be sufficient to cover its current liabilities. However, the current ratio has generally been above 1 in the historical data, suggesting a better ability to meet short-term obligations.

Notable declines in the current ratio were observed in the first quarter of 2023 and the fourth quarter of 2020, potentially indicating temporary liquidity challenges during those periods. Conversely, significant increases in the current ratio were seen in the first quarter of 2021 and the fourth quarter of 2019, showcasing improved liquidity positions in those periods.

While the current ratio is a useful measure of short-term liquidity, it is important to consider other factors such as the composition of current assets and liabilities to gain a more comprehensive understanding of Palo Alto Networks Inc's liquidity position.