Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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

US$ in thousands

	Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020	Jul 31, 2019
Accounts payable	116,300)	132,300)	128,000)	56,900)	63,600)	73,300)
Accrued compensation	554,700)	548,300)	461,100)	430,600)	322,200)	235,500)
Accrued and other liabilities	506,700)	390,800)	399,200)	329,400)	256,800)	162,400)
Deferred revenue	5,541,100)	4,674,600)	3,641,200)	2,741,900)	2,049,100)	1,582,100)
Current portion of convertible senior notes, net	963,900)	1,991,500)	3,676,800)	1,557,900)	—)	—)
Current liabilities	7,682,700)	7,737,500)	8,306,300)	5,116,700)	2,691,700)	2,053,300)
Convertible senior notes, net, excluding current portion	—)	—)	—)	1,668,100)	3,084,100)	1,430,000)
Long-term deferred revenue	5,939,400)	4,621,800)	3,352,800)	2,282,100)	1,761,100)	1,306,600)
Deferred tax liabilities	387,700)	28,100)	—)	—)	—)	—)
Long-term operating lease liabilities	380,500)	279,200)	276,100)	313,400)	336,600)	—)
Other long-term liabilities	430,900)	86,100)	108,400)	97,700)	90,100)	216,000)
Long-term liabilities	7,138,500)	5,015,200)	3,737,300)	4,361,300)	5,271,900)	2,952,600)
Total liabilities	14,821,200)	12,752,700)	12,043,600)	9,478,000)	7,963,600)	5,005,900)
Temporary equity	—)	—)	—)	129,100)	—)	—)
Preferred stock; $0.0001 par value; none issued and outstanding	—)	—)	—)	—)	—)	—)
Common stock and additional paid-in capital; $0.0001 par value	3,821,100)	3,019,000)	1,932,700)	2,311,200)	2,259,200)	2,490,900)
Accumulated other comprehensive income (loss)	(1,600)	(43,200)	(55,600)	(9,900)	10,500)	(3,700)
Retained earnings (accumulated deficit)	1,350,200)	(1,227,400)	(1,667,100)	(1,666,800)	(1,167,900)	(900,900)
Stockholders’ equity	5,169,700)	1,748,400)	210,000)	634,500)	1,101,800)	1,586,300)
Total liabilities, temporary equity and stockholders’ equity	19,990,900)	14,501,100)	12,253,600)	10,241,600)	9,065,400)	6,592,200)

Based on: 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), 10-K (reporting date: 2019-07-31).

Accounts payable: Accounts payable showed a declining trend from 73,300 thousand US$ in 2019 to 56,900 thousand US$ in 2021, followed by a significant increase to 128,000 thousand US$ in 2022. Subsequently, it slightly increased to 132,300 thousand US$ in 2023 before decreasing to 116,300 thousand US$ in 2024. This indicates increased short-term obligations in the latter years, though with some recent easing.
Accrued compensation: Accrued compensation steadily increased each year from 235,500 thousand US$ in 2019 to 554,700 thousand US$ in 2024, showing consistent growth in employee-related expenses or liabilities.
Accrued and other liabilities: This item displayed a continuous upward trend, rising from 162,400 thousand US$ in 2019 to 506,700 thousand US$ in 2024, reflecting growing miscellaneous liabilities.
Deferred revenue: Deferred revenue increased markedly from 1,582,100 thousand US$ in 2019 to 5,541,100 thousand US$ in 2024, with both current and long-term portions contributing to this growth. The rise underscores expanded unearned revenue, possibly linked to subscription-based or recurring revenue models.
Current portion of convertible senior notes, net: Convertible senior notes classified as current liabilities appeared in 2021 at 1,557,900 thousand US$, surged to 3,676,800 thousand US$ in 2022, and then decreased substantially in 2023 and 2024, indicating active conversion or refinancing activities during these periods.
Current liabilities: Current liabilities escalated sharply from 2,053,300 thousand US$ in 2019 to a peak of 8,306,300 thousand US$ in 2022, followed by a slight decline in subsequent years. This surge aligns with increases in convertible notes and deferred revenue, showing intensified short-term obligations.
Convertible senior notes, net, excluding current portion: Tallies for non-current convertible senior notes rose from 1,430,000 thousand US$ in 2019 to 3,084,100 thousand US$ in 2020, before dropping sharply to 1,668,100 thousand US$ in 2021 and becoming nil thereafter, suggesting repayments or conversions transitioned the notes into current liabilities or settled them.
Long-term deferred revenue: Long-term deferred revenue expanded substantially from 1,306,600 thousand US$ in 2019 to 5,939,400 thousand US$ in 2024, mirroring the trends in total deferred revenue and pointing towards increased prepayments or advance billings.
Deferred tax liabilities: Deferred tax liabilities were recorded only in the last two years, increasing from 28,100 thousand US$ in 2023 to 387,700 thousand US$ in 2024, reflecting new tax obligations arising from timing differences or related transactions.
Long-term operating lease liabilities: Long-term operating lease liabilities appeared in 2020 at 336,600 thousand US$ and showed a gradual decline till 2022, followed by a slight uptick to 380,500 thousand US$ in 2024, indicating shifts in leasing commitments over time.
Other long-term liabilities: Other long-term liabilities decreased from 216,000 thousand US$ in 2019 to 86,100 thousand US$ in 2023, then sharply increased to 430,900 thousand US$ in 2024, pointing to volatility in this liability category.
Long-term liabilities: Long-term liabilities increased from 2,952,600 thousand US$ in 2019 to 7,138,500 thousand US$ in 2024, with fluctuations mainly influenced by convertible notes and deferred revenue changes.
Total liabilities: Total liabilities showed consistent growth, nearly tripling from 5,005,900 thousand US$ in 2019 to 14,821,200 thousand US$ in 2024, highlighting increased overall obligations both current and long-term.
Temporary equity: A temporary equity balance of 129,100 thousand US$ was recorded only in 2021, with no presence in other years, which may indicate a specific equity instrument or transaction confined to that period.
Common stock and additional paid-in capital: This equity component fluctuated, decreasing from 2,490,900 thousand US$ in 2019 to 1,932,700 thousand US$ in 2022, then rising sharply to 3,821,100 thousand US$ in 2024, suggesting capital raises or share issuances especially in recent years.
Accumulated other comprehensive income (loss): Comprehensive income/loss varied over the years, turning positive in 2020, but remaining negative afterward with notable losses in 2022 and 2023, before improving in 2024, indicating fluctuating gains or losses from other comprehensive income sources.
Retained earnings (accumulated deficit): Retained earnings showed a worsening deficit from -900,900 thousand US$ in 2019 to -1,667,100 thousand US$ in 2022, before improving significantly to a positive 1,350,200 thousand US$ in 2024, which suggests a turnaround in net results or adjustments impacting retained earnings.
Stockholders’ equity: Stockholders’ equity declined sharply from 1,586,300 thousand US$ in 2019 to 210,000 thousand US$ in 2022, then recovered strongly to 5,169,700 thousand US$ in 2024, reflecting variations in retained earnings and capital contributions.
Total liabilities, temporary equity and stockholders’ equity: This total increased steadily over the period, from 6,592,200 thousand US$ in 2019 to 19,990,900 thousand US$ in 2024, indicating overall growth in the company’s financial scale and capitalization.

Download chart

Palo Alto Networks Inc. (NASDAQ:PANW)

Balance Sheet: Liabilities and Stockholders’ Equity