Current Ratio
since 2012
Calculation
Palo Alto Networks Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Jul 31, 2024 | 0.89 | = | 6,849,700) | ÷ | 7,682,700) |
| Jul 31, 2023 | 0.78 | = | 6,048,000) | ÷ | 7,737,500) |
| Jul 31, 2022 | 0.77 | = | 6,414,900) | ÷ | 8,306,300) |
| Jul 31, 2021 | 0.91 | = | 4,647,300) | ÷ | 5,116,700) |
| Jul 31, 2020 | 1.91 | = | 5,129,200) | ÷ | 2,691,700) |
| Jul 31, 2019 | 1.78 | = | 3,664,800) | ÷ | 2,053,300) |
| Jul 31, 2018 | 1.93 | = | 4,132,000) | ÷ | 2,139,400) |
| Jul 31, 2017 | 1.65 | = | 1,976,300) | ÷ | 1,201,300) |
| Jul 31, 2016 | 2.03 | = | 1,719,100) | ÷ | 846,800) |
| Jul 31, 2015 | 1.04 | = | 1,074,030) | ÷ | 1,032,227) |
| Jul 31, 2014 | 2.75 | = | 958,326) | ÷ | 348,171) |
| Jul 31, 2013 | 2.57 | = | 529,699) | ÷ | 206,102) |
| Jul 31, 2012 | 3.13 | = | 381,657) | ÷ | 122,006) |
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), 10-K (reporting date: 2018-07-31), 10-K (reporting date: 2017-07-31), 10-K (reporting date: 2016-07-31), 10-K (reporting date: 2015-07-31), 10-K (reporting date: 2014-07-31), 10-K (reporting date: 2013-07-31), 10-K (reporting date: 2012-07-31).
1 US$ in thousands
The annual financial data reveals several significant trends over the observed periods. Current assets have demonstrated consistent growth overall, increasing from approximately $381.7 million in 2012 to about $6.85 billion in 2024. This upward trajectory indicates an expanding asset base and potentially increased liquidity sources.
Current liabilities, on the other hand, show considerable fluctuation with a marked rise over the years. Starting from $122.0 million in 2012, current liabilities escalate notably to reach $7.68 billion in 2024. There are periods of sharp increases, notably between 2014 and 2015 and again from 2020 onward, suggesting growing short-term obligations that could be linked to operational scaling, financing activities, or other liabilities.
The current ratio, a measure of short-term liquidity, exhibits variability and a declining trend in recent years. Initially, it held strong values above 2.5 from 2012 through 2014, indicating sound liquidity. However, by 2015, the ratio dropped sharply to around 1.04 and fluctuated thereafter, mostly staying below 2.0. Notably, from 2020 to 2024, it fell below 1.0 at times, with the lowest points at 0.77 in 2022 and 0.78 in 2023, before slightly improving to 0.89 in 2024. A current ratio below 1 implies that current liabilities exceed current assets, signaling potential liquidity risk during these periods.
Overall, the data suggests that while the entity has expanded its asset holdings significantly, its current liabilities have increased disproportionately, adversely impacting liquidity ratios. The decreasing current ratio in recent years warrants attention as it may raise concerns about the company’s ability to comfortably meet short-term obligations without additional financing or asset liquidation.
Comparison to Competitors
Palo Alto Networks Inc., current ratio, long-term trends, comparison to competitors
| Palo Alto Networks Inc. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Fair Isaac Corp. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Jul 31, 2024 | 0.89 | 1.10 | 1.07 | 2.93 | 1.76 | 1.62 | 1.04 | 1.29 | 1.27 | 0.72 | 5.96 | 1.09 | 1.10 | 2.44 | 1.97 |
| Jul 31, 2023 | 0.78 | 1.30 | 1.34 | 1.24 | 1.73 | 1.51 | 0.96 | 1.47 | 1.77 | 0.91 | 5.55 | 1.02 | 1.06 | 1.15 | 1.75 |
| Jul 31, 2022 | 0.77 | 1.23 | 1.11 | 1.27 | 1.83 | 1.46 | 0.92 | 1.39 | 1.78 | 1.62 | 5.17 | 1.05 | 1.11 | 1.09 | 1.03 |
| Jul 31, 2021 | 0.91 | 1.25 | 1.25 | 1.77 | 2.65 | 0.99 | 0.88 | 1.94 | 2.08 | 2.30 | 4.34 | 1.23 | 1.05 | 1.16 | 1.12 |
| Jul 31, 2020 | 1.91 | 1.40 | 1.48 | 1.86 | 2.38 | 1.29 | 0.98 | 2.26 | 2.52 | 3.03 | 3.74 | 1.08 | 1.21 | 1.19 | 1.04 |
| Jul 31, 2019 | 1.78 | 1.40 | 0.79 | 1.74 | — | 0.93 | 1.02 | 1.83 | 2.53 | 2.49 | — | 0.95 | 1.03 | 0.99 | 1.11 |
| Jul 31, 2018 | 1.93 | 1.34 | 1.13 | 1.34 | — | 0.80 | 1.29 | 1.14 | 2.90 | 3.96 | — | 0.92 | 1.17 | 0.73 | 1.92 |
| Jul 31, 2017 | 1.65 | 1.23 | 2.05 | 1.53 | — | 0.95 | 1.33 | 0.73 | 2.48 | 3.08 | — | 0.83 | 1.15 | 1.04 | 1.93 |
| Jul 31, 2016 | 2.03 | 1.35 | 2.08 | 1.20 | — | 1.09 | 1.21 | 0.72 | 2.35 | 3.74 | — | 0.77 | 1.25 | 1.00 | 2.56 |
| Jul 31, 2015 | 1.04 | 1.36 | 2.18 | 1.80 | — | 1.18 | 1.24 | 1.47 | 2.50 | 4.13 | — | 0.81 | 1.48 | 0.99 | 3.29 |
| Jul 31, 2014 | 2.75 | 1.46 | 1.85 | 1.33 | — | 0.85 | 1.25 | 1.84 | 2.50 | 3.35 | — | 0.67 | 1.79 | 1.09 | 4.80 |
| Jul 31, 2013 | 2.57 | 1.45 | 2.65 | 1.06 | — | 1.50 | 1.28 | 1.87 | 2.71 | 3.24 | — | 0.69 | 2.43 | 1.18 | 3.47 |
| Jul 31, 2012 | 3.13 | 1.55 | 3.41 | 1.14 | — | 1.24 | 1.13 | 1.20 | 2.60 | 2.60 | — | 0.72 | 1.99 | 0.91 | — |
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), 10-K (reporting date: 2018-07-31), 10-K (reporting date: 2017-07-31), 10-K (reporting date: 2016-07-31), 10-K (reporting date: 2015-07-31), 10-K (reporting date: 2014-07-31), 10-K (reporting date: 2013-07-31), 10-K (reporting date: 2012-07-31).
Comparison to Sector (Software & Services)
Palo Alto Networks Inc., current ratio, long-term trends, comparison to sector (software & services)
| Palo Alto Networks Inc. | Software & Services | |
|---|---|---|
| Jul 31, 2024 | 0.89 | 1.19 |
| Jul 31, 2023 | 0.78 | 1.39 |
| Jul 31, 2022 | 0.77 | 1.43 |
| Jul 31, 2021 | 0.91 | 1.67 |
| Jul 31, 2020 | 1.91 | 1.91 |
| Jul 31, 2019 | 1.78 | 1.84 |
| Jul 31, 2018 | 1.93 | 2.22 |
| Jul 31, 2017 | 1.65 | 2.06 |
| Jul 31, 2016 | 2.03 | 2.03 |
| Jul 31, 2015 | 1.04 | 2.15 |
| Jul 31, 2014 | 2.75 | 2.01 |
| Jul 31, 2013 | 2.57 | 2.04 |
| Jul 31, 2012 | 3.13 | 1.84 |
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), 10-K (reporting date: 2018-07-31), 10-K (reporting date: 2017-07-31), 10-K (reporting date: 2016-07-31), 10-K (reporting date: 2015-07-31), 10-K (reporting date: 2014-07-31), 10-K (reporting date: 2013-07-31), 10-K (reporting date: 2012-07-31).
Comparison to Industry (Information Technology)
Palo Alto Networks Inc., current ratio, long-term trends, comparison to industry (information technology)
| Palo Alto Networks Inc. | Information Technology | |
|---|---|---|
| Jul 31, 2024 | 0.89 | 1.24 |
| Jul 31, 2023 | 0.78 | 1.41 |
| Jul 31, 2022 | 0.77 | 1.37 |
| Jul 31, 2021 | 0.91 | 1.55 |
| Jul 31, 2020 | 1.91 | 1.71 |
| Jul 31, 2019 | 1.78 | 1.66 |
| Jul 31, 2018 | 1.93 | 1.88 |
| Jul 31, 2017 | 1.65 | 2.04 |
| Jul 31, 2016 | 2.03 | 2.01 |
| Jul 31, 2015 | 1.04 | 2.03 |
| Jul 31, 2014 | 2.75 | 1.97 |
| Jul 31, 2013 | 2.57 | 2.20 |
| Jul 31, 2012 | 3.13 | 2.07 |
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), 10-K (reporting date: 2018-07-31), 10-K (reporting date: 2017-07-31), 10-K (reporting date: 2016-07-31), 10-K (reporting date: 2015-07-31), 10-K (reporting date: 2014-07-31), 10-K (reporting date: 2013-07-31), 10-K (reporting date: 2012-07-31).