Palo Alto Networks Inc (PANW)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 7,103,300 | 6,899,000 | 6,339,800 | 6,242,700 | 6,849,700 | 5,581,800 | 6,118,700 | 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 |
| 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 |
| Current ratio | 0.89 | 0.90 | 0.84 | 0.84 | 0.89 | 0.79 | 0.79 | 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 |
July 31, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $7,103,300K ÷ $7,988,000K
= 0.89
The analysis of Palo Alto Networks Inc.'s current ratio over the specified period reveals fluctuations indicative of the company's short-term liquidity position. Initially, as of October 31, 2020, the current ratio stood at 1.63, suggesting a comfortable liquidity cushion where current assets significantly exceeded current liabilities. However, a notable decline occurred by January 31, 2021, decreasing to 0.98, indicating a contraction in liquidity and a potential tightening of working capital.
Throughout 2021, the ratio experienced further diminutions, reaching a low of 0.68 on October 31, 2021, which signifies that current liabilities began to surpass current assets, raising concerns about liquidity adequacy. The downward trend continued into the early months of 2022, with ratios around 0.66 in January and slightly improving to 0.74 by April. The ratio remained relatively stable during the latter part of 2022, fluctuating modestly around 0.70 to 0.77.
In 2023, the ratio displayed signs of gradual recovery, moving from 0.64 in January to 0.78 in July, and further increasing to 0.86 by October 2023. This upward trajectory suggests an improvement in the company's liquidity position, approaching more balanced territory. For the period extending into 2024 and beyond, the ratio maintained a steady upward trend, reaching approximately 0.89 by July 2024 and stabilizing around 0.84 to 0.90 through January 2025.
Overall, the company's current ratio has experienced significant decline from a robust 1.63 at the end of October 2020 to a low near 0.64 in January 2023, indicating periods of liquidity stress. However, recent data reflects a positive trend of recovery, with ratios approaching or exceeding 0.80, which suggests an improvement in short-term liquidity and a more balanced liquidity position. This pattern underscores the importance of monitoring ongoing liquidity management to ensure adequate coverage of current liabilities in relation to current assets.
Peer comparison
Jul 31, 2025