Palo Alto Networks Inc (PANW)

Return on assets (ROA)

		Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020
Net income	US$ in thousands	2,577,600	439,700	-267,000	-498,900	-267,000
Total assets	US$ in thousands	19,990,900	14,501,100	12,253,600	10,241,600	9,065,400
ROA		12.89%	3.03%	-2.18%	-4.87%	-2.95%

July 31, 2024 calculation

ROA = Net income ÷ Total assets
= $2,577,600K ÷ $19,990,900K
= 12.89%

Palo Alto Networks Inc has shown a fluctuating trend in its return on assets (ROA) over the past five years. The ROA was negative in the fiscal years ending July 31, 2020, 2021, and 2022, indicating that the company's assets were not generating profits during those periods. However, there was a notable improvement in the fiscal year ending July 31, 2023, when the ROA increased to 3.03%.

The most recent fiscal year ending July 31, 2024, saw a significant increase in ROA to 12.89%, indicating that the company was able to generate a higher level of profit relative to its assets during that period. This improvement suggests that Palo Alto Networks Inc may have implemented strategies to enhance asset efficiency and profitability.

Overall, the upward trend in ROA observed in the last two years is a positive sign, indicating improved asset utilization and profitability for Palo Alto Networks Inc. However, it is essential to continue monitoring future ROA performance to assess the company's overall financial health and operational efficiency.