Palo Alto Networks Inc (PANW)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets 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 | 0.16 | 0.33 | 0.17 | 0.36 | 0.34 | 0.23 | 0.20 | 0.21 |
| Debt-to-capital 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 | 0.72 | 0.76 | 0.61 | 0.81 | 0.74 | 0.66 | 0.48 | 0.49 |
| 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 |
| 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 |
Palo Alto Networks Inc's solvency ratios reveal a strong and consistent financial position over the latest quarters. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have remained at low levels, indicating minimal reliance on debt to finance its operations. Specifically, the company has maintained a debt-free status in recent quarters, with all ratios registering as 0.00. This signifies that the company's assets and capital are primarily funded through equity, which can be seen as a positive indicator of financial stability.
Furthermore, the financial leverage ratio, which measures the extent of a company's financial leverage, has shown a declining trend over the past quarters. Despite significant fluctuations, the ratio has generally decreased, suggesting a reduction in the company's reliance on debt to support its operations. This decreasing trend in financial leverage implies a lower risk of financial distress and a more resilient financial position for Palo Alto Networks Inc.
Overall, the solvency ratios paint a picture of a financially robust company that has efficiently managed its capital structure and maintained a healthy balance sheet. The consistent low levels of debt and improving financial leverage ratio indicate a solid foundation for Palo Alto Networks Inc to weather economic uncertainties and pursue future growth opportunities.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 120.07 | 72.96 | 46.08 | 35.96 | 21.82 | 10.40 | 4.05 | -1.99 | -6.56 | -4.28 | -3.42 | -2.65 | -1.85 | -1.68 | -1.49 | -1.36 | -1.61 | -1.55 | -0.92 | -0.09 |
The interest coverage ratio measures a company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates a company is more capable of meeting its interest obligations.
Looking at Palo Alto Networks Inc's interest coverage ratios over the past few years, we can see a fluctuating trend. In the most recent period, as of July 31, 2024, the interest coverage ratio was 120.07, reflecting a strong ability to cover interest expenses. This may indicate that the company's EBIT is significantly higher than its interest expenses, which is a positive sign for investors and creditors.
However, the interest coverage ratios in previous periods show some variability. There was a significant jump from negative ratios in October 2022 to positive ratios in January 2023, which could suggest improvements in the company's financial performance. Subsequently, the ratios have generally been on an upward trajectory until the most recent period.
Overall, the recent high interest coverage ratio for Palo Alto Networks Inc is a positive indicator of the company's financial health and ability to meet its interest payments. However, investors should continue to monitor future trends in the interest coverage ratio to assess the company's financial stability.