Stock Analysis on Net
Stock Analysis on Net

Palo Alto Networks Inc. (NASDAQ:PANW)

Common-Size Balance Sheet: Assets

Palo Alto Networks Inc., common-size consolidated balance sheet: assets

Microsoft Excel
Jul 31, 2026 Jul 31, 2025 Jul 31, 2024 Jul 31, 2023 Jul 31, 2022 Jul 31, 2021
Cash and cash equivalents 5.19 9.62 7.68 7.83 17.29 18.30
Short-term investments 1.15 2.69 5.22 8.65 12.37 10.03
Accounts receivable, net of allowance for credit losses 7.49 12.58 13.10 16.99 17.48 12.11
Short-term financing receivables, net 1.22 3.03 3.63 2.68 0.91 0.77
Short-term deferred contract costs 1.12 1.78 1.85 2.34 2.59 2.70
Prepaid expenses and other current assets 1.67 2.21 2.79 3.22 1.70 1.47
Current assets 17.84% 31.91% 34.26% 41.71% 52.35% 45.38%
Property and equipment, net 1.08 1.64 1.81 2.44 2.92 3.11
Operating lease right-of-use assets 1.44 1.47 1.93 1.82 1.97 2.57
Long-term investments 9.98 23.56 20.88 21.02 8.58 8.67
Long-term financing receivables, net 1.95 4.25 5.91 4.51 1.57 1.90
Long-term deferred contract costs 1.38 2.49 2.81 3.77 4.49 4.83
Goodwill 45.42 19.37 16.76 20.18 22.42 26.46
Intangible assets, net 14.48 3.24 1.88 2.18 3.14 4.87
Deferred tax assets 5.04 10.28 12.00 0.16 0.00 0.00
Other assets 1.40 1.79 1.77 2.22 2.55 2.22
Long-term assets 82.16% 68.09% 65.74% 58.29% 47.65% 54.62%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-K (reporting date: 2026-07-31), 10-K (reporting date: 2025-07-31), 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31).

The asset composition of the organization demonstrates a significant structural shift over the observed period, characterized by a transition from a liquidity-heavy position to one dominated by long-term, non-current assets. Current assets decreased from 45.38% of total assets in 2021 to 17.84% by 2026, while long-term assets rose from 54.62% to 82.16% over the same timeframe.

Liquidity and Short-Term Cash Position
A consistent downward trend is observed in highly liquid assets. Cash and cash equivalents declined from 18.30% in 2021 to 5.19% in 2026. This contraction is further mirrored in short-term investments, which dropped from 10.03% to 1.15%. The combined weight of these two categories suggests a strategic reallocation of liquid capital toward other asset classes or operational investments.
Working Capital and Receivables
Accounts receivable, net of allowance for credit losses, showed volatility, peaking at 17.48% in 2022 before descending to 7.49% in 2026. Short-term and long-term financing receivables experienced a period of growth between 2021 and 2024, suggesting an increase in financing activities offered to customers, before declining in the final year of the period.
Intangible Assets and Goodwill
There is a marked increase in the proportion of intangible assets and goodwill, particularly in 2026. Goodwill rose sharply to 45.42% in 2026 from 19.37% in 2025, and net intangible assets increased from 3.24% to 14.48% in the same period. This pattern is indicative of significant acquisition activity, where the purchase price exceeded the fair value of the identifiable net tangible assets.
Long-Term Investment and Tax Strategy
Long-term investments saw a substantial increase from 8.67% in 2021 to a peak of 23.56% in 2025, followed by a sharp correction to 9.98% in 2026. Additionally, deferred tax assets emerged as a notable component of the balance sheet, peaking at 12.00% in 2024 before moderating to 5.04% by 2026.
Fixed and Deferred Costs
Property and equipment, as well as operating lease right-of-use assets, maintain a relatively small and declining footprint, indicating a light-asset operational model. Similarly, deferred contract costs, both short-term and long-term, have trended downward, falling from a combined 7.53% in 2021 to 2.50% in 2026.

AI Ask an analyst for more