Palo Alto Networks Inc (PANW)
Profitability ratios
Return on sales
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 74.35% | 72.66% | 69.08% | 72.94% | 72.71% |
| Operating profit margin | 8.52% | 5.65% | -3.45% | -7.44% | -5.40% |
| Pretax margin | 12.31% | 8.26% | -3.78% | -11.38% | -7.00% |
| Net profit margin | 32.11% | 6.41% | -4.88% | -12.21% | -8.06% |
Based on the profitability ratios of Palo Alto Networks Inc provided in the table, we can observe the following trends:
1. Gross Profit Margin:
- The gross profit margin has shown a generally increasing trend from 2020 to 2024, indicating improved efficiency in managing the cost of goods sold. The company's ability to generate profits from its core operations has strengthened over time.
2. Operating Profit Margin:
- The operating profit margin has fluctuated but has generally seen an upward trend from 2020 to 2024. This suggests that the company has been able to control its operating expenses more efficiently and improve profitability from its operating activities.
3. Pretax Margin:
- The pretax margin has demonstrated fluctuations over the years, with significant improvements from negative figures in 2021 and 2022 to positive margins in 2023 and 2024. This indicates better financial performance before accounting for taxes, showing the company's efforts in enhancing operational efficiency.
4. Net Profit Margin:
- The net profit margin has experienced significant fluctuations, turning from negative values in 2020, 2021, and 2022 to a highly positive margin in 2024. This improvement reflects the company's ability to efficiently manage costs, increase revenue, and enhance profitability for its shareholders.
In summary, Palo Alto Networks Inc has shown improvements in its profitability ratios over the years, indicating effective cost management, operational efficiency, and enhanced financial performance leading to superior net profit margins.
Return on investment
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.42% | 2.67% | -1.54% | -2.97% | -1.97% |
| Return on assets (ROA) | 12.89% | 3.03% | -2.18% | -4.87% | -2.95% |
| Return on total capital | 19.28% | 33.95% | -85.62% | -13.10% | -3.42% |
| Return on equity (ROE) | 49.86% | 25.15% | -127.14% | -78.63% | -24.23% |
Palo Alto Networks Inc's profitability ratios have shown significant fluctuations over the past five years.
- Operating return on assets (Operating ROA) has improved steadily from -2.97% in July 2021 to 3.42% in July 2024, indicating that the company is generating more profit from its operations relative to its total assets.
- Return on assets (ROA) has also shown a positive trend, increasing from -4.87% in July 2021 to 12.89% in July 2024, indicating that the company's overall profitability relative to its total assets has improved significantly.
- Return on total capital has fluctuated, with a significant improvement in July 2024 at 19.28% compared to -85.62% in July 2022. This ratio reflects the company's efficiency in generating profit from both debt and equity investments.
- Return on equity (ROE) has shown a similar positive trend, increasing from -78.63% in July 2021 to 49.86% in July 2024, indicating that the company is becoming more efficient at generating profit from shareholders' equity.
Overall, the upward trend in profitability ratios indicates an improvement in Palo Alto Networks Inc's financial performance and efficiency in utilizing its assets and capital to generate profit. However, the company should continue to monitor and sustain this positive trend to ensure long-term financial sustainability.