Palo Alto Networks Inc (PANW)

Gross profit margin

		Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020
Gross profit	US$ in thousands	5,968,300	4,983,000	3,782,800	2,981,200	2,408,900
Revenue	US$ in thousands	8,027,700	6,857,600	5,475,900	4,087,400	3,313,000
Gross profit margin		74.35%	72.66%	69.08%	72.94%	72.71%

July 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $5,968,300K ÷ $8,027,700K
= 74.35%

Palo Alto Networks Inc has displayed a consistent trend of improving gross profit margins over the past five years, with the margin increasing from 72.71% in July 2020 to 74.35% in July 2024. This indicates that the company has effectively managed its production costs and pricing strategies to enhance profitability. The strong gross profit margin suggests that Palo Alto Networks Inc generates a substantial profit from its core operations relative to its revenue, which is favorable for sustaining and growing its business. The upward progression in gross profit margin implies efficiency in cost management and pricing, showcasing the company's ability to deliver value to its stakeholders. Overall, the consistent improvement in gross profit margin reflects positively on Palo Alto Networks Inc's financial performance and operational effectiveness.