Palo Alto Networks Inc (PANW)

Quick 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	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
Receivables	US$ in thousands	3,344,500	2,287,700	2,341,800	1,858,900	2,852,000	1,688,800	1,449,900	1,391,800	2,253,800	1,357,400	1,065,100	916,000	1,319,400	798,200	695,700	686,500	1,037,100	668,800	540,300	499,200
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
Quick ratio		0.77	0.73	0.74	0.77	0.68	0.65	0.57	0.63	0.71	0.68	0.59	0.61	0.82	1.24	0.88	1.48	1.78	1.16	1.64	1.64

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 shown fluctuations over the past quarters, ranging from as low as 0.57 to as high as 1.78. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory. A quick ratio of below 1 indicates that the company may have difficulty meeting its short-term liabilities.

Based on the data provided, the quick ratio has generally been above 1 in recent quarters, indicating that Palo Alto Networks Inc has had a more than sufficient level of liquid assets to cover its short-term obligations. However, there have been quarters with quick ratios below 1, suggesting potential liquidity challenges during those periods.

Overall, while the quick ratio has varied, the trend indicates that Palo Alto Networks Inc has generally maintained a strong liquidity position in recent quarters, with the ability to easily cover its short-term liabilities with its liquid assets. It is important for investors and analysts to continue monitoring the company's quick ratio to assess its ongoing liquidity and financial health.