Palo Alto Networks Inc (PANW)
Operating return on assets (Operating ROA)
| Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,101,100 | 984,100 | 942,000 | 755,200 | 683,900 | 699,000 | 601,000 | 587,300 | 387,300 | 149,200 | 22,900 | -90,900 | -188,800 | -264,600 | -327,400 | -342,300 | -304,100 | -261,500 | -207,600 | -171,700 |
| Total assets | US$ in thousands | 23,576,200 | 22,002,800 | 20,951,700 | 20,374,600 | 19,990,900 | 17,930,800 | 18,292,000 | 14,808,500 | 14,501,100 | 14,170,500 | 13,163,400 | 12,543,800 | 12,253,600 | 11,100,000 | 10,400,500 | 10,426,400 | 10,241,600 | 9,562,100 | 9,488,400 | 8,726,500 |
| Operating ROA | 4.67% | 4.47% | 4.50% | 3.71% | 3.42% | 3.90% | 3.29% | 3.97% | 2.67% | 1.05% | 0.17% | -0.72% | -1.54% | -2.38% | -3.15% | -3.28% | -2.97% | -2.73% | -2.19% | -1.97% |
July 31, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,101,100K ÷ $23,576,200K
= 4.67%
The analysis of Palo Alto Networks Inc.'s operating return on assets (operating ROA) over the specified period reveals a significant transformation from negative to positive territory, indicative of improving operational efficiency and profitability. From October 31, 2020, through October 31, 2021, the operating ROA demonstrated a declining trend, moving further into negative territory, with the most negative point reaching -3.28%. This decline suggests that during this period, the company's operations were relatively less efficient in generating operating income relative to its assets.
Starting from late 2021, a reversal in this negative trajectory is observable. The operating ROA transitioned into positive figures by January 31, 2023, when it reached 0.17%, marking a pivotal shift towards operational profitability. This upward trend gained further momentum through 2023, with the figure rising steadily to 2.67% by July 31, 2023, and subsequently reaching 3.97% as of October 31, 2023. The continued upward trajectory is further evidenced by projections into 2024 and 2025, where the operating ROA stabilizes at elevated levels, with estimates of approximately 4.5% by January 2025 and beyond.
Overall, this progression signifies a comprehensive turnaround in the company's operating performance. The transition from negative to positive operating ROA reflects enhanced operational efficiency, effective asset management, and favorable operational conditions. The ongoing upward trend suggests that Palo Alto Networks is likely capitalizing on improved revenue generation, cost management, or both, which contributes to a stronger overall return on assets in the evaluated period.