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

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Jul 31, 2025 Jul 31, 2024 Jul 31, 2023 Jul 31, 2022 Jul 31, 2021 Jul 31, 2020
Cash and cash equivalents 9.62 7.68 7.83 17.29 18.30 32.63
Short-term investments 2.69 5.22 8.65 12.37 10.03 8.71
Accounts receivable, net of allowance for credit losses 12.58 13.10 16.99 17.48 12.11 11.44
Short-term financing receivables, net 3.03 3.63 2.68 0.91 0.77 0.00
Short-term deferred contract costs 1.78 1.85 2.34 2.59 2.70 2.27
Prepaid expenses and other current assets 2.21 2.79 3.22 1.70 1.47 1.53
Current assets 31.91% 34.26% 41.71% 52.35% 45.38% 56.58%
Property and equipment, net 1.64 1.81 2.44 2.92 3.11 3.84
Operating lease right-of-use assets 1.47 1.93 1.82 1.97 2.57 2.85
Long-term investments 23.56 20.88 21.02 8.58 8.67 6.12
Long-term financing receivables, net 4.25 5.91 4.51 1.57 1.90 0.00
Long-term deferred contract costs 2.49 2.81 3.77 4.49 4.83 4.66
Goodwill 19.37 16.76 20.18 22.42 26.46 20.00
Intangible assets, net 3.24 1.88 2.18 3.14 4.87 3.95
Deferred tax assets 10.28 12.00 0.16 0.00 0.00 0.00
Other assets 1.79 1.77 2.22 2.55 2.22 2.00
Long-term assets 68.09% 65.74% 58.29% 47.65% 54.62% 43.42%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 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), 10-K (reporting date: 2020-07-31).

Cash and cash equivalents
There is a clear downward trend from 32.63% in 2020 to a low of 7.68% in 2024, followed by a slight increase to 9.62% in 2025. This suggests a reduced reliance on cash holdings as a proportion of total assets over the years, with a modest rebound in the latest period.
Short-term investments
This category initially increased from 8.71% in 2020 to peak at 12.37% in 2022, then declined steadily to 2.69% by 2025, indicating a diminishing allocation to short-term investments in the more recent years.
Accounts receivable, net of allowance for credit losses
The proportion increased substantially from 11.44% in 2020 to a peak of 17.48% in 2022, followed by a decline to around 12.58% in 2025. This pattern reflects a rising and then decreasing credit sales or outstanding receivables relative to total assets.
Short-term financing receivables, net
Beginning with no data in 2020, this item rose from 0.77% in 2021 to 3.63% in 2024, then slightly decreased to 3.03% in 2025, indicating growing involvement in short-term financing activities.
Short-term deferred contract costs
A slight rise from 2.27% in 2020 to 2.7% in 2021 was followed by a gradual decline to 1.78% in 2025, implying that deferred contract costs as a percentage of total assets have somewhat decreased over time.
Prepaid expenses and other current assets
This category remained relatively stable with minor fluctuations, increasing from 1.53% in 2020 to a peak of 3.22% in 2023, then dropping to 2.21% in 2025, showing modest variability but a general stability in this component.
Current assets
There is a significant decline from 56.58% in 2020 to 31.91% in 2025, showing a reduction in the share of current assets in total assets, suggestive of a strategic shift or asset structure evolution toward longer-term holdings.
Property and equipment, net
This asset class shows a consistent downward trend from 3.84% in 2020 to 1.64% in 2025, indicating a reduced investment in physical fixed assets over the period.
Operating lease right-of-use assets
A moderate decline from 2.85% in 2020 to 1.47% in 2025 is observed, pointing to a decrease in leased asset commitments relative to total assets.
Long-term investments
Long-term investments show a notable rise, particularly jumping from 8.58% in 2022 to 21.02% in 2023, and continuing to increase to 23.56% in 2025, which suggests an aggressive growth or reallocation towards long-term financial assets.
Long-term financing receivables, net
Starting with no data in 2020, this item increased from 1.9% in 2021 to a peak of 5.91% in 2024, then decreased slightly to 4.25% in 2025, indicating an increasing engagement in longer-term financing activities over time.
Long-term deferred contract costs
A gradual decline is observed from 4.66% in 2020 to 2.49% in 2025, demonstrating a reduction in the proportion of deferred costs related to long-term contracts.
Goodwill
Goodwill rose from 20% in 2020 to a peak of 26.46% in 2021, then declined to 16.76% in 2024, with a slight recovery to 19.37% in 2025. This fluctuation may reflect changes in acquisition activity or asset impairments affecting goodwill valuation.
Intangible assets, net
After increasing from 3.95% in 2020 to 4.87% in 2021, intangible assets decreased to 1.88% in 2024 before recovering somewhat to 3.24% in 2025, suggesting variability in intangible asset composition or amortization effects.
Deferred tax assets
Deferred tax assets data are only available from 2023, where they were 0.16%, sharply increasing to 12% in 2024 and slightly reducing to 10.28% in 2025, indicating the recognition or revaluation of deferred tax assets in recent years.
Other assets
This category remains relatively stable, fluctuating mildly between 1.77% and 2.55% over the period, suggesting no material changes.
Long-term assets
The proportion of long-term assets steadily increased from 43.42% in 2020 to 68.09% in 2025. This reflects a strategic shift towards a heavier investment in long-term asset categories as a share of total assets.
Total assets
By definition, total assets remain constant at 100% across all periods, serving as the base for the other percentage allocations.