Palo Alto Networks Inc (PANW)
Solvency ratios
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.01 | 3.87 | 8.29 | 58.35 | 13.41 |
The solvency ratios for Palo Alto Networks Inc. over the period from July 31, 2021, to July 31, 2025, reveal a consistent absence of debt obligations, as evidenced by the zero values in the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio for all listed dates. This indicates that the company has not utilized debt financing during this timeframe and relies primarily on equity for its capital structure.
In contrast, the financial leverage ratio demonstrates significant fluctuations. It was markedly high at 13.41 on July 31, 2021, then increased substantially to 58.35 in July 31, 2022, before decreasing to 8.29 in July 2023 and further declining to 3.87 in July 2024, reaching approximately 3.01 in July 2025. These variations suggest episodic changes in the company's perceived risk profile or the potential use of leverage, perhaps through off-balance-sheet arrangements or other financial strategies not directly reflected in traditional debt ratios.
Overall, the data indicates that Palo Alto Networks Inc. maintains a solvent position characterized by zero reported debt, with the financial leverage ratio serving as a secondary indicator of leverage-related risk that varies over time but remains relatively low in recent years.
Coverage ratios
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | |
|---|---|---|---|---|---|
| Interest coverage | 0.00 | 119.65 | 21.57 | -6.82 | -1.88 |
The interest coverage ratio for Palo Alto Networks Inc. exhibits a significant fluctuation over the specified period. As of July 31, 2021, the ratio was recorded at -1.88, indicating that the company's earnings before interest and taxes (EBIT) were insufficient to cover interest expenses, resulting in a negative coverage ratio. This negative figure persisted and worsened by July 31, 2022, declining sharply to -6.82, which underscores a deteriorating ability to meet interest obligations from operating earnings during that year.
However, a notable shift occurs by July 31, 2023, when the interest coverage ratio turns positive at 21.57. This indicates that by this period, the company's EBIT significantly exceeded its interest expenses, reflecting a period of improved profitability and financial health. The trend continues with a substantial increase to 119.65 projected for July 31, 2024, suggesting an expectation of considerably stronger earnings relative to interest obligations in the near future.
Yet, the data for July 31, 2025, presents an anomaly with an interest coverage ratio of 0.00. This suggests that either the company is anticipated to generate zero EBIT relative to interest expenses (which could imply a planned profit at exactly the threshold of covering interest or a data reporting anomaly) or that it may be expected to be at a point of neutrality concerning interest coverage.
Overall, the analysis delineates a transition from a period of negative and deteriorating interest coverage ratios to a phase of robust financial capability to cover interest expenses, before reaching a neutral point in the subsequent year. This pattern highlights a significant improvement in operational profitability or a reduction in interest expenses, with forecasted stability thereafter.