Palo Alto Networks Inc (PANW)
Financial leverage ratio
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 23,576,200 | 19,990,900 | 14,501,100 | 12,253,600 | 10,241,600 |
| Total stockholders’ equity | US$ in thousands | 7,824,400 | 5,169,700 | 1,748,400 | 210,000 | 763,600 |
| Financial leverage ratio | 3.01 | 3.87 | 8.29 | 58.35 | 13.41 |
July 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $23,576,200K ÷ $7,824,400K
= 3.01
The financial leverage ratio of Palo Alto Networks Inc. demonstrates considerable variability over the observed period from July 31, 2021, to July 31, 2025. Specifically, the ratio was 13.41 in July 2021, indicating a moderate level of leverage at that time. By July 31, 2022, the ratio surged significantly to 58.35, suggesting a substantial increase in leverage, which could be attributable to higher levels of debt relative to equity or an increase in total assets financed through debt. Subsequently, the ratio experienced a dramatic decline to 8.29 by July 2023, indicating a reduction in leverage and suggesting deleveraging activities or repayment of debt. The downward trend continued with ratios of 3.87 in July 2024, and further to 3.01 in July 2025, emphasizing a consistent move towards lower leverage levels. This pattern reflects a strategic shift towards reducing financial risk—potentially through debt repayment or asset management—leading to a significantly lower reliance on borrowed funds in recent years. Overall, the trend illustrates a trajectory from high leverage to a more conservative capital structure, aligned with prudent financial management and risk mitigation strategies.