Current Ratio
since 2012
Calculation
Palo Alto Networks Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Jul 31, 2025 | 0.94 | = | 7,522,800) | ÷ | 7,988,000) |
| 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: 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), 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
- Current Assets
- Current assets showed a general upward trend from 2012 to 2025. Beginning at approximately 382 million USD in 2012, the amount increased consistently through the years, reaching a notable peak around 4.13 billion USD in 2018. Despite a slight dip in 2019 and 2021, the values recovered and continued rising, ending at around 7.52 billion USD in 2025. This indicates an overall strengthening in liquidity or asset accumulation over the period.
- Current Liabilities
- Current liabilities exhibited a more volatile pattern. Starting at about 122 million USD in 2012, liabilities rose sharply in 2015 to over 1 billion USD, then showed fluctuating values in the succeeding years, reaching a substantial increase from 2020 onwards. There was a significant jump in 2021 to over 5 billion USD, which further escalated, peaking near 8.3 billion USD by 2022, and remaining high through to 2025. The sharp rise in current liabilities in the later years signals a considerable increase in short-term obligations.
- Current Ratio
- The current ratio declined markedly over the period. Initially, it was strong at 3.13 in 2012, suggesting robust short-term liquidity. It decreased to around 1 by 2015 and then fluctuated between 1.93 and 0.77 in subsequent years. From 2020 onward, the ratio consistently remained below 1, dipping as low as 0.77 in 2022. This decline indicates that current liabilities grew faster than current assets, resulting in weaker liquidity and potential challenges in covering short-term obligations from current assets.
- Overall Analysis
- The trends indicate that while the company has successfully increased its current assets significantly over the years, the growth in current liabilities has outpaced this, particularly after 2019. The declining current ratio below 1 suggests increasing liquidity risk, with current liabilities surpassing current assets, which could impact short-term financial stability. The sharp rise in liabilities without a proportional increase in assets warrants further examination of the underlying causes and implications for operational cash flows and funding strategies.
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. | Datadog 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, 2025 | 0.94 | — | — | — | 1.77 | — | — | — | 1.36 | 1.35 | 0.75 | — | 1.06 | — | — | 1.90 |
| Jul 31, 2024 | 0.89 | 1.10 | 1.07 | 2.93 | 1.76 | 2.64 | 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 | 3.17 | 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 | 3.09 | 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 | 3.54 | 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 | 5.77 | 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 | — | 4.51 | 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: 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), 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, 2025 | 0.94 | — |
| Jul 31, 2024 | 0.89 | 1.20 |
| Jul 31, 2023 | 0.78 | 1.40 |
| Jul 31, 2022 | 0.77 | 1.43 |
| Jul 31, 2021 | 0.91 | 1.68 |
| Jul 31, 2020 | 1.91 | 1.92 |
| 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: 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), 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, 2025 | 0.94 | — |
| 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: 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), 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).