Palo Alto Networks Inc (PANW)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The data indicates that Palo Alto Networks Inc. maintains a debt-free capital structure across the observed periods, as evidenced by the consistent zero values in the debt-to-assets, debt-to-capital, and debt-to-equity ratios from October 2020 through July 2025. This suggests that the company relies solely on equity financing and has not incurred long-term or short-term debt during this timeframe, reflecting a conservative approach to leverage.
Despite the absence of leverage ratios based on debt, the financial leverage ratio exhibits significant variation throughout the period. Starting at a high level of 11.68 in October 2020, it decreases substantially over time, reaching as low as approximately 3.01 by July 2025. This downward trend indicates that the company's operating or financial leverage has reduced, possibly due to increased equity base, retained earnings, or other capital restructuring activities that diminish the reliance on debt or leverage.
The persistent zero values in the debt-focused ratios confirm that Palo Alto Networks Inc. has maintained a debt-free capital structure, while the fluctuating financial leverage ratio reflects changes in operating or financial leverage relative to equity. Overall, the company's solvency appears robust given the absence of debt obligations, and its leverage management suggests a strategy oriented toward minimizing financial risk exposure.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 335.23 | 426.29 | 268.77 | 162.88 | 119.30 | 72.26 | 45.62 | 35.55 | 21.44 | 10.22 | 3.86 | -2.19 | -6.76 | -4.34 | -3.47 | -2.68 | -1.87 | -1.71 | -1.51 | -1.37 |
The interest coverage ratio for Palo Alto Networks Inc. exhibits a significant transformation over the period analyzed. Historically, throughout late 2020 and into early 2022, the company recorded negative interest coverage ratios, with values such as -1.37 in October 2020 and progressively declining to a low of -6.76 in July 2022, indicating that the company's earnings before interest and taxes (EBIT) were insufficient to cover interest expenses during this period. Negative ratios suggest the company was operating at a loss or had minimal earnings, making debt service challenging and highlighting elevated financial risk.
Starting from January 2023, a notable turnaround occurs, with the interest coverage ratio transitioning into positive territory, reaching 3.86 at the end of January 2023. This positive trend continues sharply upward in subsequent quarters, with ratios escalating to 10.22 in April 2023 and further surging to 35.55 by October 2023. The trajectory indicates a marked improvement in the company's ability to generate earnings capable of covering interest obligations, reflecting enhanced profitability and tighter interest coverage.
The impressive growth persists into 2024 and 2025, with ratios escalating dramatically—reaching values such as 162.88 in October 2024, and existing in a very high range of over 268 as of January 2025. Such elevated ratios suggest that the company's EBIT substantially exceeds its interest expenses, signifying robust financial health, a decreased risk of insolvency concerning interest obligations, and potentially a more conservative capital structure or significantly increased earnings.
Overall, the interest coverage ratio of Palo Alto Networks Inc. demonstrates a clear shift from negative territory, indicating periods of financial strain, to strongly positive and escalating figures, denoting substantial improvements in earnings capacity to meet interest commitments. This positive trend enhances the company's creditworthiness and reflects a period of sustained financial strengthening.