Palo Alto Networks Inc (PANW)

Debt-to-equity ratio

		Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020
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
Debt-to-equity ratio		0.00	0.00	0.00	2.63	2.80

July 31, 2024 calculation

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

The debt-to-equity ratio of Palo Alto Networks Inc has shown a significant decrease over the past three years, from 2.80 in July 2020 to 2.63 in July 2021. However, in the most recent fiscal year ending July 2024, the company reported a debt-to-equity ratio of 0.00, indicating that the company either has no debt or a very minimal amount compared to its equity. This suggests that the company has been reducing its use of debt as a source of financing and may be relying more on equity to fund its operations and growth. Overall, the decreasing trend in the debt-to-equity ratio indicates a strengthening financial position and lower financial risk for Palo Alto Networks Inc.