Palo Alto Networks Inc (PANW)

Quick ratio

		Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020
Cash	US$ in thousands	1,535,200	1,135,300	2,118,500	1,874,200	2,958,000
Short-term investments	US$ in thousands	1,043,600	1,254,700	1,516,000	1,026,900	789,800
Receivables	US$ in thousands	3,344,500	2,852,000	2,253,800	1,319,400	1,037,100
Total current liabilities	US$ in thousands	7,682,700	7,737,500	8,306,300	5,116,700	2,691,700
Quick ratio		0.77	0.68	0.71	0.82	1.78

July 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,535,200K + $1,043,600K + $3,344,500K) ÷ $7,682,700K
= 0.77

The quick ratio of Palo Alto Networks Inc has fluctuated over the past five years, with values ranging from 0.68 to 1.78. The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities.

In the latest year, as of July 31, 2024, the quick ratio stands at 0.77, which suggests that the company may have slightly less liquid assets relative to its current liabilities. This could imply potential challenges in meeting short-term obligations without relying on additional sources of financing.

Overall, the trend in the quick ratio for Palo Alto Networks Inc indicates some variability in liquidity position over the years, warranting further analysis to assess the company's ability to efficiently manage its short-term obligations.