Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data
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- Analysis of Solvency Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Dividend Discount Model (DDM)
- Operating Profit Margin since 2012
- Price to Earnings (P/E) since 2012
- Price to Book Value (P/BV) since 2012
- Price to Sales (P/S) since 2012
- Analysis of Debt
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Palo Alto Networks Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity (quarterly data)
Based on: 10-Q (reporting date: 2025-10-31), 10-K (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-Q (reporting date: 2024-10-31), 10-K (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-Q (reporting date: 2023-10-31), 10-K (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-Q (reporting date: 2022-10-31), 10-K (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-Q (reporting date: 2021-10-31), 10-K (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31), 10-Q (reporting date: 2020-10-31), 10-K (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-Q (reporting date: 2020-01-31), 10-Q (reporting date: 2019-10-31).
- Current Liabilities
- Current liabilities as a percentage of total liabilities, temporary equity, and stockholders’ equity have experienced considerable fluctuations. Starting at around 30% in late 2019, there was a notable spike between early 2021 and early 2022, reaching a peak above 70%. After this period, a steady decline is observed through 2024 and into early 2025, bringing the level down to approximately 31.5%. This suggests a reduction in short-term obligations relative to the overall capital structure over the latter periods.
- Long-Term Liabilities
- Long-term liabilities showed significant variability as well, initially near 48% in late 2019 and increasing up to around 61% in late 2020, likely influenced by changes in convertible senior notes and associated debt. Afterward, long-term liabilities decreased substantially to around 26.5% by late 2021, followed by a gradual increase and stabilization near 32% towards the end of the observed timeline. This pattern reflects shifts in the company’s long-duration debt and obligations relative to the total capital.
- Total Liabilities
- Total liabilities remained dominant throughout the periods, constituting between approximately 63% and 99% of total liabilities, temporary equity, and stockholders' equity. The highest total liability percentage was seen in early 2022, near 99%, after which a gradual decline occurred. This decline corresponds with the decrease in current liabilities and some increases in equity components, indicating an improving balance sheet composition over time.
- Convertible Senior Notes
- The current portion of convertible senior notes appeared prominently from mid-2020, initially representing over 16%, spiking beyond 35% in early 2022, and then steadily declining to minimal values by late 2024, before disappearing in the last periods. The non-current portion exhibited large swings and was significant before early 2021 but disappeared from reported values after mid-2021. This suggests active debt refinancing, repayments, or conversions occurring during these years, impacting the maturity profile of liabilities.
- Deferred Revenue
- Deferred revenue remained a substantial and relatively stable part of the liabilities, fluctuating mostly between 22% and 32%. Both current and long-term deferred revenue together indicate a consistent inflow of prepayments reflecting ongoing contractual customer commitments, with slight growth around mid-2022 to mid-2023 and some tapering thereafter.
- Stockholders' Equity
- Stockholders’ equity as a percentage of total funding sources started quite low, around 22%, but declined sharply during 2020 and early 2021, reaching a minimum near 1%. Following early 2021, equity steadily increased with a notable rise into 2024 and 2025, climbing to nearly 37%, indicating strengthening financial equity, likely due to retained earnings growth and additional capital inflows.
- Retained Earnings
- Retained earnings demonstrated a marked turnaround; initially presenting with negative values near -14%, the deficit deepened through early 2021. However, from 2021 onward, there was a remarkable recovery from negative territory into positive values, reaching close to 12% in the latest quarters. This positive trend signals improvements in profitability and accumulation of earnings over time.
- Common Stock and Additional Paid-in Capital
- This component decreased steadily from around 36% in late 2019 to lows near 15%-19% in 2021 and 2022, then gradually rebounded, reaching about 25% by early 2025. This pattern suggests a combination of share issuance, repurchases, or valuation adjustments affecting equity capital contributions.
- Accrued and Other Liabilities
- Accrued compensation and accrued and other liabilities both exhibit moderate volatility but stable average levels, generally ranging between 1.7% and 4.2%. There are periodic increases corresponding to accrued compensation, particularly noticeable in mid-2021 and later quarters, which could reflect scheduled compensations or bonus accruals.
- Deferred Tax and Lease Liabilities
- Deferred tax liabilities became more apparent from early 2023 onward but remain a small percentage, declining from 3.2% down to below 0.5%, possibly reflecting effective tax planning or changing tax positions. Long-term operating lease liabilities showed a gradual and steady decline from around 5.4% in late 2019 to approximately 1.5% by early 2025, indicating reduced lease obligations or possibly changes in lease accounting.
- Other Long-Term Liabilities
- Other long-term liabilities remained relatively low but showed an upward trend starting from under 1% and reaching above 4% near 2024-2025. This gradual increase may indicate rising contingent liabilities, deferred compensation, or other long-duration obligations being recognized on the balance sheet.
- Overall Capital Structure Trends
- The overall composition shifted from being heavily weighted towards liabilities, particularly during early 2022, toward a more balanced structure with increased equity proportions in later years. This shift is characterized by a reduction in current and long-term liabilities, enhancement of equity through retained earnings improvement, and fluctuating components like convertible notes and deferred revenue. The data suggest a strengthening of the company’s financial position with a trend toward lower leverage and improved shareholder equity participation over the observed periods.