Palo Alto Networks Inc (PANW)

Debt-to-equity 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-equity 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	2.63	3.20	1.57	4.18	2.80	1.98	0.91	0.95

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 fluctuated over the past eight quarters. From October 2019 to January 2021, the company had relatively low debt-to-equity ratios ranging from 0.91 to 3.20, indicating a conservative capital structure with lower reliance on debt financing compared to equity.

However, beginning in April 2021 and continuing through October 2022, the debt-to-equity ratios increased significantly, reaching a peak of 4.18 in October 2020. This surge suggests a substantial increase in the company's debt levels relative to its equity, possibly indicating an aggressive financing strategy or significant borrowing for expansion or investment.

In the most recent period, from January 2023 to July 2024, the debt-to-equity ratios have returned to lower levels, consistently showing 0.00. This sudden decline may signal a strategic shift towards a more conservative capital structure, with reduced leverage and focus on strengthening the equity base relative to debt.

Overall, the trend in Palo Alto Networks Inc's debt-to-equity ratio indicates variations in the company's capital structure and financing decisions over the analyzed period. It is essential for stakeholders to monitor these changes to assess the company's financial risk and capital management strategy.