Stock Analysis on Net
Stock Analysis on Net

Palo Alto Networks Inc. (NASDAQ:PANW)

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity 

Palo Alto Networks Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Jul 31, 2025 Jul 31, 2024 Jul 31, 2023 Jul 31, 2022 Jul 31, 2021 Jul 31, 2020
Accounts payable 0.98 0.58 0.91 1.04 0.56 0.70
Accrued compensation 2.58 2.77 3.78 3.76 4.20 3.55
Accrued and other liabilities 3.59 2.53 2.69 3.26 3.22 2.83
Deferred revenue 26.73 27.72 32.24 29.72 26.77 22.60
Current portion of convertible senior notes, net 0.00 4.82 13.73 30.01 15.21 0.00
Current liabilities 33.88% 38.43% 53.36% 67.79% 49.96% 29.69%
Convertible senior notes, net, excluding current portion 0.00 0.00 0.00 0.00 16.29 34.02
Long-term deferred revenue 27.36 29.71 31.87 27.36 22.28 19.43
Deferred tax liabilities 0.38 1.94 0.19 0.00 0.00 0.00
Long-term operating lease liabilities 1.43 1.90 1.93 2.25 3.06 3.71
Other long-term liabilities 3.76 2.16 0.59 0.88 0.95 0.99
Long-term liabilities 32.93% 35.71% 34.58% 30.50% 42.58% 58.15%
Total liabilities 66.81% 74.14% 87.94% 98.29% 92.54% 87.85%
Temporary equity 0.00 0.00 0.00 0.00 1.26 0.00
Preferred stock; $0.0001 par value; none issued and outstanding 0.00 0.00 0.00 0.00 0.00 0.00
Common stock and additional paid-in capital; $0.0001 par value 22.45 19.11 20.82 15.77 22.57 24.92
Accumulated other comprehensive income (loss) 0.21 -0.01 -0.30 -0.45 -0.10 0.12
Retained earnings (accumulated deficit) 10.54 6.75 -8.46 -13.60 -16.27 -12.88
Stockholders’ equity 33.19% 25.86% 12.06% 1.71% 6.20% 12.15%
Total liabilities, temporary equity and stockholders’ equity 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).

Total liabilities and equity structure
The proportion of total liabilities relative to the combined total of liabilities, temporary equity, and stockholders’ equity exhibited a declining trend from 98.29% in 2022 to 66.81% in 2025, indicating a shift towards increased equity financing or reduction in liabilities over the period.
Current liabilities
Current liabilities demonstrated significant volatility, peaking at 67.79% in 2022 and subsequently decreasing to 33.88% by 2025. This decrease suggests an improvement in short-term financial stability or a change in the structure of short-term obligations.
Long-term liabilities
Long-term liabilities declined from 58.15% in 2020 to 30.5% in 2022, followed by moderate fluctuations around 33% through 2025. This reduction, especially the steep drop by 2022, could indicate active debt repayment or reclassification of liabilities.
Convertible senior notes
The current portion of convertible senior notes rose sharply to 30.01% in 2022 from virtually zero in 2020, then declined substantially to 4.82% by 2024. Meanwhile, the non-current portion decreased from 34.02% in 2020 to 16.29% in 2021 and disappeared thereafter, reflecting maturity, conversion, or repayment of these instruments during the timeframe.
Deferred revenue
Deferred revenue, combining current and long-term segments, increased steadily from 42.03% in 2020 to a peak of 64.11% in 2023, indicating accelerated recognition of future revenues or growth in contract liabilities, followed by a moderate decline to 54.09% in 2025.
Accrued compensation and accrued liabilities
Accrued compensation as a percentage of total financing showed a peak at 4.2% in 2021, with a general downward trend thereafter, reaching 2.58% in 2025. Accrued and other liabilities fluctuated modestly, with a low at 2.53% in 2024 and a rise to 3.59% by 2025, highlighting some variability in short-term payable obligations.
Stockholders' equity
The equity portion of the financing mix declined to a low of 1.71% in 2022 before increasing sharply to 33.19% by 2025. This suggests significant equity issuance, retained earnings accumulation, or revaluation effects enhancing the company’s equity base.
Retained earnings
Retained earnings (accumulated deficit) showed consistent improvement over the five-year horizon, moving from a negative position of -16.27% in 2021 to a positive 10.54% in 2025, reflecting an improvement in profitability or accumulation of earnings over time.
Common stock and additional paid-in capital
This component experienced a decline from 24.92% in 2020 to a trough of 15.77% in 2022 but rebounded to 22.45% by 2025. The recovery indicates renewed equity financing or share issuances impacting the capital structure positively after the dip.
Other long-term liabilities and lease liabilities
Other long-term liabilities were relatively stable but increased notably to 3.76% in 2025 from 0.59% in 2023, which may indicate new long-term obligations or provisions. Long-term operating lease liabilities decreased consistently from 3.71% in 2020 to 1.43% in 2025, showing a reduction in lease-related obligations.
Deferred tax liabilities
Deferred tax liabilities appeared starting in 2023 at 0.19% and fluctuated slightly, ultimately showing 0.38% in 2025, indicating ongoing but limited deferred tax obligations.
Temporary equity and preferred stock
Temporary equity appeared only in 2021 at 1.26% and was not present in other years. No preferred stock was issued throughout the analyzed period.