Palo Alto Networks Inc (PANW)

Financial leverage 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
Total assets	US$ in thousands	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	9,065,400	6,501,800	7,184,100	6,824,800
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
Financial leverage ratio		3.87	4.01	4.20	6.82	8.29	11.50	18.06	24.69	58.35	32.88	88.29	20.09	16.14	9.59	9.15	11.68	8.23	8.73	4.47	4.50

July 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $19,990,900K ÷ $5,169,700K
= 3.87

The financial leverage ratio of Palo Alto Networks Inc has exhibited significant fluctuations over the periods provided. The ratio measures the company's reliance on debt financing relative to its equity. A higher ratio indicates higher financial leverage and potentially higher risk.

The financial leverage ratio was relatively stable around 3.87 to 4.20 from July 2024 to January 2024, suggesting a moderate level of debt usage during this period. However, there was a dramatic increase in the ratio to 6.82 in October 2023, indicating a significant increase in debt relative to equity. This trend continued with ratios exceeding 8 in subsequent periods, peaking at 88.29 in January 2022.

The ratio then experienced a notable decline to 9.15 in January 2021, followed by a slight increase in the following period. The most recent data shows a financial leverage ratio of 4.50 in October 2019, showing a lower level of leverage compared to previous periods.

Overall, the company's financial leverage ratio has varied significantly over the periods, indicating fluctuations in the balance between debt and equity in the company's capital structure. Investors and stakeholders should closely monitor these ratios to assess the company's risk profile and financial stability.