Palo Alto Networks Inc (PANW)
Financial leverage ratio
| Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 23,576,200 | 22,002,800 | 20,951,700 | 20,374,600 | 19,990,900 | 17,930,800 | 18,292,000 | 14,808,500 | 14,501,100 | 14,170,500 | 13,163,400 | 12,543,800 | 12,253,600 | 11,100,000 | 10,400,500 | 10,426,400 | 10,241,600 | 9,562,100 | 9,488,400 | 8,726,500 |
| Total stockholders’ equity | US$ in thousands | 7,824,400 | 7,230,500 | 6,375,300 | 5,911,800 | 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 | 763,600 | 997,200 | 1,198,500 | 747,000 |
| Financial leverage ratio | 3.01 | 3.04 | 3.29 | 3.45 | 3.87 | 4.01 | 4.20 | 6.82 | 8.29 | 11.50 | 18.06 | 24.69 | 58.35 | 32.88 | 88.29 | 20.09 | 13.41 | 9.59 | 7.92 | 11.68 |
July 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $23,576,200K ÷ $7,824,400K
= 3.01
The financial leverage ratio for Palo Alto Networks Inc. has exhibited significant fluctuations over the analyzed period. Starting from a high of 11.68 as of October 31, 2020, the ratio experienced an upward surge, reaching a peak of 88.29 on January 31, 2022. This substantial increase indicates a period where the firm's debt levels relative to its equity grew markedly, potentially reflecting strategic leveraging or increased borrowing to finance expansion initiatives.
Subsequently, the ratio declined sharply from its peak in early 2022, dropping to 32.88 by April 30, 2022, and continuing a downward trend in the subsequent periods. By October 31, 2023, the ratio had further decreased to 6.82, signaling a significant reduction in financial leverage and suggesting a possible deleveraging effort or improved equity position.
The ongoing decline persisted into early 2024 and beyond, with the ratio reaching as low as 3.45 by October 31, 2024, and maintaining a relatively stable, low level through April and July 2025, where it stood at approximately 3.29 and 3.01 respectively. This sustained low level of the leverage ratio indicates that the company has considerably reduced its reliance on debt relative to equity, possibly reflecting prudent financial management, improved operating cash flows, or a strategic shift towards maintaining a stronger equity base.
Overall, the trend demonstrates a movement from periods of high leverage—potentially associated with aggressive growth or financing activities—toward a more conservative and balanced capital structure. The persistent decrease in the financial leverage ratio over time suggests an emphasis on reducing debt burdens and enhancing financial stability and flexibility.