Palo Alto Networks Inc (PANW)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.72	0.76	0.61	0.81	0.74	0.66	0.48	0.49

July 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $5,169,700K)
= 0.00

The debt-to-capital ratio of Palo Alto Networks Inc has fluctuated over the past two years. As of July 31, 2021, the ratio stood at 0.72, indicating that the company was using debt to finance approximately 72% of its capital structure. This ratio increased to 0.76 by April 30, 2021, and then decreased to 0.61 by January 31, 2021.

However, there was a notable increase in the debt-to-capital ratio in the subsequent periods. By October 31, 2021, the ratio rose to 0.81, signifying a higher reliance on debt for funding. The ratio then slightly decreased to 0.74 by January 31, 2022, and to 0.66 by April 30, 2022.

From July 31, 2022, to July 31, 2024, the debt-to-capital ratio remained stable at 0.00, indicating that the company did not have any debt in its capital structure during these periods. This may suggest a strategic shift towards reducing debt levels or a change in financing strategy.

Overall, the trend in the debt-to-capital ratio for Palo Alto Networks Inc shows variability in the company's capital structure over the analyzed periods. It is important to monitor future changes in this ratio to assess the company's financial health and risk profile.