Palo Alto Networks Inc. (NASDAQ:PANW)

Computers, equipment, and software

The value of computers, equipment, and software has shown a consistent upward trend over the entire period. Starting from 306,800 thousand US dollars in 2020, the amount increased steadily each year, reaching 513,300 thousand by 2025. This indicates ongoing investments in technological and operational assets.

Leasehold improvements

Leasehold improvements exhibited gradual growth from 229,500 thousand US dollars in 2020 to 324,700 thousand in 2025. The increase was steady with a slightly larger increment observed between 2024 and 2025, suggesting enhanced expenditures on leased property upgrades in the latter years.

Land

The land value remained constant at 49,600 thousand US dollars for the first two years, then increased significantly to 87,200 thousand from 2022 onwards. It remained stable at this higher level through 2025, reflecting a discrete acquisition or revaluation occurring in 2022 without further changes thereafter.

Demonstration units

Demonstration units showed minor fluctuations throughout the period. The values hovered between around 41,600 and 46,900 thousand US dollars, with small increases and decreases but no significant long-term upward or downward trend.

Furniture and fixtures

Furniture and fixtures demonstrated steady growth from 39,900 thousand in 2020 to 54,000 thousand in 2025, indicating continuous investment in office or operational furnishings at a moderate pace over the years.

Property and equipment, gross

The gross value of property and equipment increased consistently each year, starting at 669,100 thousand US dollars in 2020 and rising to 1,025,900 thousand in 2025. This steady growth reflects significant overall asset acquisitions or capital expenditures during the period.

Accumulated depreciation

Accumulated depreciation grew in magnitude from -321,000 thousand US dollars in 2020 to -638,600 thousand in 2025, indicating increasing depreciation charges corresponding to the expanding asset base. The cumulative depreciation nearly doubled over the period, consistent with aging assets and ongoing usage.

Property and equipment, net

The net property and equipment value displayed a fluctuating pattern. It decreased from 348,100 thousand in 2020 to 318,400 thousand in 2021, then rose to 357,800 thousand in 2022 before slightly declining again in 2023. From 2023 onward, it showed a moderate increasing trend, reaching 387,300 thousand by 2025. This suggests that while gross asset acquisitions increased, rising depreciation partially offset the net asset growth during much of the period.

The analysis of the annual property, plant, and equipment data reveals several notable trends and insights over the observed periods.

Average age ratio

The average age ratio shows a consistent increasing trend from 51.82% in July 2020 to 68.03% in July 2025. This indicates that the property, plant, and equipment are aging steadily over time, with a higher proportion of the assets reaching an advanced age relative to their estimated useful life.

Estimated total useful life

The estimated total useful life of the assets increased gradually from 6 years in 2020 to 10 years by 2024 and remained constant at 10 years into 2025. This suggests either a reevaluation of asset longevity possibly due to improvements in asset quality or maintenance practices, or a shift in the composition of the asset base towards longer-lived assets.

Estimated age, time elapsed since purchase

The estimated age shows a steady increase, as expected, rising from 3 years in 2020 to 7 years by 2024 and remaining constant thereafter. The stabilization at 7 years likely reflects the limit of available data projections rather than any change in asset replacement or acquisition behavior.

Estimated remaining life

The estimated remaining life consistently remains at 3 years throughout the entire period. Despite the increase in total useful life, the remaining life does not fluctuate, indicating a possible steady approach to asset replacement cycles or a conservative estimation method to maintain consistent depreciation schedules.

Overall, the data illustrate an aging asset base with a simultaneous extension of useful life estimates, which may have implications for depreciation expense and capital expenditure planning. The steady remaining life estimate suggests a cautious approach in projection assumptions. These patterns are critical for understanding asset management strategies and financial forecasting.

The financial data reveals a consistent upward trend in both accumulated depreciation and the gross value of property and equipment over the observed periods. Accumulated depreciation increased steadily from 321,000 thousand US dollars in July 2020 to 638,600 thousand US dollars in July 2025, indicating ongoing wear and consumption of the company’s fixed assets.

Similarly, the gross property and equipment value showed growth, rising from 669,100 thousand US dollars in July 2020 to 1,025,900 thousand US dollars in July 2025. This suggests continued investment in physical assets, likely reflecting expansions or upgrades.

The value of land remained stable at 49,600 thousand US dollars initially, with a noticeable increase to 87,200 thousand US dollars from July 2022 onward, maintaining this level through to the last period. This stability in land valuation, coupled with the increase observed in the middle of the timeline, may indicate acquisition or revaluation activity during that time frame.

Average Age Ratio

This metric, representing the proportion of accumulated depreciation relative to gross property and equipment, shows a rising trend from 51.82% in July 2020 to 68.03% in July 2025. The increasing age ratio suggests that the asset base is aging, with a larger portion of the assets’ useful life having been utilized. This could highlight a need for eventual asset replacement or increased maintenance.

Overall, the data points to a company actively investing in its fixed assets, while also experiencing the natural aging and depreciation of these assets. The rising average age ratio supports the inference that the asset base is maturing, which may affect future capital expenditure and maintenance planning.

The data for property, plant, and equipment indicates a consistent upward trend in the gross value over the examined periods. Starting at 669,100 thousand US dollars in 2020, this figure increases each year, reaching 1,025,900 thousand US dollars by 2025. This suggests ongoing investments or acquisitions contributing to growth in fixed assets.

The land value remains stable from 2020 through 2021 at 49,600 thousand US dollars, then increases notably in 2022 to 87,200 thousand US dollars and maintains that level through 2025. This step change may reflect a significant purchase or revaluation occurring in 2022, after which no further change is observed.

Depreciation expense shows a generally declining trend from 96,000 thousand US dollars in 2020 to a low of 85,100 thousand US dollars in 2024, before increasing again to 94,400 thousand US dollars in 2025. The overall variance indicates some fluctuations which could be due to changes in asset mix, useful lives, or depreciation methods.

Examining the estimated total useful life assigned to the assets, there is an increase from 6 years in 2020 to 10 years by 2024 and 2025. This lengthening of useful life estimates may reflect changes in asset composition, enhanced asset durability, or revised management assumptions on asset longevity, which can impact depreciation expense recognition.

Overall, the data reveals steady asset growth accompanied by adjustments in depreciation parameters. The rise in gross property and equipment values, coupled with increasing useful life estimates, implies a strategic approach toward asset management aiming to optimize the allocation of capital expenditures and depreciation charge over time.

The data on property, plant, and equipment-related depreciation for the six-year period reveals several notable trends and insights concerning asset aging and consumption patterns.

Accumulated Depreciation

Accumulated depreciation shows a consistent upward trend from 321,000 thousand US dollars in 2020 to 638,600 thousand US dollars projected for 2025. This steady increase indicates ongoing depreciation charges being applied over time, reflecting the continuous consumption or aging of the asset base. The doubling of accumulated depreciation over this timeframe suggests significant asset wear or utilization.

Depreciation Expense

Depreciation expense exhibits a relatively stable pattern, fluctuating between 85,100 and 96,000 thousand US dollars annually across the periods. While there is a slight decline from 96,000 thousand in 2020 to 85,100 thousand in 2024, it rebounds to 94,400 thousand in 2025. This stability indicates consistent allocation of depreciation costs, possibly linked to a steady asset acquisition or replacement schedule without dramatic changes in asset valuation or depreciation methods.

Time Elapsed Since Purchase

The average age of assets increases from 3 years in 2020 to 7 years by 2024 and remains constant at 7 years in 2025. This trend implies that assets are aging with limited acquisition of new assets to reduce average age or that recent acquisitions have a limited impact on reducing overall asset age. The plateau at 7 years in 2024 and 2025 suggests that the aging process is stabilizing, potentially due to balanced asset additions and retirements.

Overall, the data signals a maturing asset base with consistent depreciation patterns. The rising accumulated depreciation paired with relatively steady annual depreciation expenses reflects systematic asset usage and aging without significant shifts in capital expenditures or asset replacement strategies during the observed period.

The financial data related to property, plant, and equipment (PPE) over the six annual reporting periods reveals several notable trends and insights. The net value of property and equipment has shown moderate fluctuations with an overall upward trajectory towards the later years.

Net Property and Equipment Value

Starting at $348,100 thousand in the year ending July 31, 2020, the net PPE value initially decreased in the following year to $318,400 thousand, indicating possible asset disposals or impairments. However, from 2021 onward, the net PPE value experienced a gradual increase, reaching $387,300 thousand by July 31, 2025. This suggests ongoing investments or capital expenditures contributing to asset growth despite earlier depletion.

Land

The value of land remained stable at $49,600 thousand for the first two years, then sharply increased to $87,200 thousand where it remained consistent through the final years analyzed. This represents a significant revaluation or acquisition of land assets occurring between 2021 and 2022, with no further changes in subsequent periods.

Depreciation Expense

Depreciation expense has been relatively stable across the years, fluctuating within a range from $85,100 thousand to $96,000 thousand. The highest depreciation expense was recorded in 2020 at $96,000 thousand, with slight declines and rises in following years. Notably, there was a dip to $85,100 thousand in 2024, followed by an increase to $94,400 thousand in 2025. These variations may reflect changes in asset composition, depreciation policies, or asset aging.

Estimated Remaining Life

The estimated remaining life of property, plant, and equipment remained constant at 3 years throughout the entire period, indicating stable assumptions regarding the useful life expectancy of the asset base.

In summary, the data portrays a company's consistent capital asset management with a stable asset life assumption. There was a significant increase in land assets between 2021 and 2022, contributing to the overall asset base growth in subsequent years. Depreciation expenses have shown minor fluctuations but remained largely steady, suggesting consistent usage and aging patterns of the assets. The net property and equipment value's initial drop followed by a recovery indicates a dynamic asset portfolio influenced by acquisitions and disposals.