Palo Alto Networks Inc (PANW)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	2,577,600	2,447,600	2,276,600	613,900	439,700	215,300	34,300	-143,400	-267,000	-389,600	-461,500	-510,300	-498,900	-438,500	-368,200	-299,600	-267,000	-228,900	-174,300	-103,200
Total assets	US$ in thousands	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	9,065,400	6,501,800	7,184,100	6,824,800
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%

July 31, 2024 calculation

ROA = Net income (ttm) ÷ 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 5 years. The ROA has been improving in recent quarters, with a notable increase from 3.03% in July 2023 to 12.89% in July 2024. This suggests that the company has been effectively utilizing its assets to generate profits.

The positive trend in ROA indicates that Palo Alto Networks Inc has been able to generate more earnings relative to its total assets, which is a positive sign for investors and stakeholders. However, it is important to note that the ROA had significantly dipped in the past, hitting a low of -4.89% in October 2021. This indicates that the company faced challenges in efficiently utilizing its assets to generate profits during that period.

Overall, the recent improvement in ROA reflects positively on the company's operational efficiency and profitability, but investors should continue to monitor this ratio to ensure sustainable performance in the future.