Palo Alto Networks Inc (PANW)
Return on total capital
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 996,600 | 593,500 | -179,800 | -301,700 | -143,100 |
| Long-term debt | US$ in thousands | — | — | 0 | 1,668,100 | 3,084,100 |
| Total stockholders’ equity | US$ in thousands | 5,169,700 | 1,748,400 | 210,000 | 634,500 | 1,101,800 |
| Return on total capital | 19.28% | 33.95% | -85.62% | -13.10% | -3.42% |
July 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $996,600K ÷ ($—K + $5,169,700K)
= 19.28%
Palo Alto Networks Inc's return on total capital has shown volatility over the past five years. In the most recent fiscal year ended July 31, 2024, the company generated a return on total capital of 19.28%, indicating that for every dollar of total capital employed, the company generated a profit of approximately 19.28 cents.
Compared to the prior year, there was a significant decrease in the return on total capital from 33.95% in July 2023 to 19.28% in July 2024. This decline may suggest potential challenges or changes in the company's operations impacting its ability to generate profits relative to its total capital base.
Looking further back, in July 2022, Palo Alto Networks Inc experienced a sharp negative return on total capital of -85.62%. This could indicate significant issues in effectively utilizing its capital to generate profits during that period.
In the preceding years, the return on total capital was also negative, with figures of -13.10% in July 2021 and -3.42% in July 2020. These negative values suggest that the company struggled to achieve profitability relative to the total capital invested in those respective years.
Overall, Palo Alto Networks Inc's return on total capital exhibits variability, with recent fluctuations indicating potential challenges in efficiently utilizing its capital to generate profits. Further analysis of the company's financial performance and operational strategies may provide insights into the factors driving these fluctuations in return on total capital.
Peer comparison
Jul 31, 2024