Palo Alto Networks Inc (PANW)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 996,600 | 999,500 | 884,800 | 837,800 | 593,500 | 295,500 | 111,000 | -54,300 | -179,800 | -264,900 | -328,600 | -343,900 | -301,700 | -257,800 | -196,800 | -149,600 | -143,100 | -119,800 | -71,900 | -7,200 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | 0 | 0 | 0 | 0 | 1,668,100 | 3,190,600 | 1,629,100 | 3,119,200 | 3,084,100 | 1,477,000 | 1,461,200 | 1,445,500 |
| Total stockholders’ equity | US$ in thousands | 5,169,700 | 4,467,800 | 4,357,200 | 2,170,500 | 1,748,400 | 1,232,400 | 729,000 | 508,000 | 210,000 | 337,600 | 117,800 | 518,900 | 634,500 | 997,200 | 1,037,300 | 747,000 | 1,101,800 | 744,700 | 1,608,500 | 1,516,400 |
| 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% |
July 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (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 fluctuations over the past several periods. The return on total capital has ranged from as high as 38.60% in Oct 31, 2023, to as low as -278.95% in Jan 31, 2022. The most recent return on total capital as of Jul 31, 2024, stands at 19.28%, indicating a moderate return on the company's total capital. It is important to note that while there have been periods of significant underperformance in terms of return on total capital, there has also been a gradual improvement in recent periods. This suggests that the company may be taking steps to enhance its capital efficiency and profitability. Nonetheless, further analysis of the company's financial performance and strategic initiatives is recommended to gain a more comprehensive understanding of its overall financial health.
Peer comparison
Jul 31, 2024