Analysis of Debt

Palo Alto Networks Inc., balance sheet: debt

US$ in thousands

	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020	Jul 31, 2019	Jul 31, 2018
Current portion of convertible senior notes, net	1,991,500)	3,676,800)	1,557,900)	—)	—)	550,400)
Convertible senior notes, net, excluding current portion	—)	—)	1,668,100)	3,084,100)	1,430,000)	1,369,700)
Total convertible Senior Notes (carrying amount)	1,991,500)	3,676,800)	3,226,000)	3,084,100)	1,430,000)	1,920,100)

Debt item	Description	The company
Total convertible Senior Notes (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	Palo Alto Networks Inc. total debt increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

	Jul 31, 2023
Selected Financial Data (US$ in thousands)
Total convertible Senior Notes (fair value)	5,000,000)
Financial Ratio
Debt, fair value to carrying amount ratio	2.51

Weighted-average effective interest rate of liability component of Convertible Senior Notes: 0.60%

Interest rate	Debt amount¹	Interest rate × Debt amount
0.60%	1,991,500)	11,949)
Total	1,991,500)	11,949)
0.60%

¹ US$ in thousands

² Weighted-average interest rate = 100 × 11,949 ÷ 1,991,500 = 0.60%

Palo Alto Networks Inc. (NASDAQ:PANW)