Palo Alto Networks Inc (PANW)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 74.35% | 74.56% | 74.30% | 73.66% | 72.66% | 71.15% | 70.09% | 69.31% | 69.08% | 70.22% | 71.09% | 71.94% | 72.94% | 72.58% | 72.57% | 72.66% | 72.60% | 73.39% | 73.93% | 74.05% |
| Operating profit margin | 8.52% | 8.99% | 8.01% | 8.18% | 5.65% | 2.31% | 0.37% | -1.57% | -3.45% | -5.18% | -6.88% | -7.74% | -7.44% | -6.83% | -5.69% | -4.94% | -5.39% | -5.37% | -4.38% | -2.51% |
| Pretax margin | 12.31% | 12.67% | 11.54% | 11.35% | 8.26% | 4.14% | 1.36% | -1.41% | -3.78% | -6.40% | -8.93% | -10.72% | -11.38% | -10.73% | -9.00% | -7.48% | -6.99% | -6.19% | -4.95% | -2.97% |
| Net profit margin | 32.11% | 31.47% | 30.35% | 8.55% | 6.41% | 3.33% | 0.56% | -2.47% | -4.88% | -7.63% | -9.70% | -11.55% | -12.21% | -11.44% | -10.09% | -8.63% | -8.05% | -7.19% | -5.73% | -3.52% |
Palo Alto Networks Inc has demonstrated strong and relatively stable gross profit margins over the past few years, ranging from 71.15% to 74.56%. This indicates the company efficiently manages its cost of goods sold.
The operating profit margin has shown some fluctuations, but overall, it has improved over the years, increasing from -7.74% to 8.99%. This suggests that the company has been able to control its operating expenses better and generate more operating income.
Despite some variability, the pretax margin has shown a general upward trend, ranging from -11.38% to 12.67%. This indicates that the company has become more profitable before accounting for taxes and other expenses.
The net profit margin has also displayed fluctuations, but the overall trend shows improvement, increasing from -12.21% to 32.11%. This suggests that the company has been able to increase its bottom line profitability, effectively translating its revenues into net income.
Overall, Palo Alto Networks Inc has shown improvement in its profitability ratios over the years, indicating operating efficiency and effective cost management. The increasing trend in profitability margins reflects positively on the company's financial performance and potential for sustainable growth.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 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% | -1.97% | -2.63% | -1.86% | -1.08% |
| Return on assets (ROA) | 12.89% | 13.65% | 12.45% | 4.15% | 3.03% | 1.52% | 0.26% | -1.14% | -2.18% | -3.51% | -4.44% | -4.89% | -4.87% | -4.59% | -3.88% | -3.43% | -2.95% | -3.52% | -2.43% | -1.51% |
| Return on total capital | 19.28% | 22.37% | 20.31% | 38.60% | 33.95% | 23.98% | 15.23% | -10.69% | -85.62% | -78.47% | -278.95% | -66.27% | -13.10% | -6.16% | -7.38% | -3.87% | -3.42% | -5.39% | -2.34% | -0.24% |
| Return on equity (ROE) | 49.86% | 54.78% | 52.25% | 28.28% | 25.15% | 17.47% | 4.71% | -28.23% | -127.14% | -115.40% | -391.77% | -98.34% | -78.63% | -43.97% | -35.50% | -40.11% | -24.23% | -30.74% | -10.84% | -6.81% |
Palo Alto Networks Inc's profitability ratios have shown volatility over the past several quarters.
- The Operating Return on Assets (Operating ROA) improved from negative values in FY 2022 to positive figures in FY 2024, indicating the company's ability to generate operating profits from its assets has been increasing.
- Return on Assets (ROA) also displayed an improving trend, reaching a peak in the latest quarter of 12.89%. This suggests that Palo Alto Networks is becoming more efficient in generating profits from its total assets.
- Return on Total Capital showed significant fluctuations, with a remarkable increase in FY 2022, followed by a steep decline in FY 2023. This ratio reflects the company's overall ability to generate profits from its invested capital.
- Return on Equity (ROE) has been fluctuating as well, with positive values throughout the analyzed period. The trend indicates that Palo Alto Networks is, generally, providing a favorable return to its equity shareholders over time.
Overall, Palo Alto Networks Inc's profitability ratios demonstrate an improving trend in recent periods, indicating enhanced efficiency and profitability in utilizing its assets and capital. However, the company has experienced some volatility in profitability performance, which should be carefully monitored and analyzed further.
See also:
Palo Alto Networks Inc Profitability Ratios (Quarterly Data)