Palo Alto Networks Inc (PANW)
Operating return on assets (Operating ROA)
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 683,900 | 387,300 | -188,800 | -304,100 | -179,000 |
| Total assets | US$ in thousands | 19,990,900 | 14,501,100 | 12,253,600 | 10,241,600 | 9,065,400 |
| Operating ROA | 3.42% | 2.67% | -1.54% | -2.97% | -1.97% |
July 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $683,900K ÷ $19,990,900K
= 3.42%
Palo Alto Networks Inc's operating return on assets (ROA) has shown an improving trend over the past five years. In Jul 2020, the operating ROA stood at -1.97%, indicating a negative return on the assets employed in operations. However, the company managed to turn around its performance, achieving positive operating ROA figures in the subsequent years. By Jul 2024, the operating ROA had notably improved to 3.42%, reflecting the company's effectiveness in generating operating profits relative to its total assets.
The increasing trend in operating ROA suggests that Palo Alto Networks Inc has been enhancing its operational efficiency and profitability over the years. This improvement may indicate better management of assets and resources, leading to increased earnings from core business operations. It also signals a positive performance trajectory for the company in utilizing its assets to generate operating income. Overall, the upward trend in operating ROA reflects positively on Palo Alto Networks Inc's operational performance and financial management.
Peer comparison
Jul 31, 2024