Debt to Equity
since 2012
Calculation
Palo Alto Networks Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Convertible senior notes1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|
| Jul 31, 2026 | 0.06 | = | 1,774) | ÷ | 27,492) |
| Jul 31, 2025 | 0.00 | = | —) | ÷ | 7,824) |
| Jul 31, 2024 | 0.19 | = | 964) | ÷ | 5,170) |
| Jul 31, 2023 | 1.14 | = | 1,992) | ÷ | 1,748) |
| Jul 31, 2022 | 17.51 | = | 3,677) | ÷ | 210) |
| Jul 31, 2021 | 5.08 | = | 3,226) | ÷ | 635) |
| Jul 31, 2020 | 2.80 | = | 3,084) | ÷ | 1,102) |
| Jul 31, 2019 | 0.90 | = | 1,430) | ÷ | 1,586) |
| Jul 31, 2018 | 1.99 | = | 1,920) | ÷ | 966) |
| Jul 31, 2017 | 0.69 | = | 525) | ÷ | 760) |
| Jul 31, 2016 | 0.64 | = | 508) | ÷ | 790) |
| Jul 31, 2015 | 1.00 | = | 487) | ÷ | 488) |
| Jul 31, 2014 | 1.00 | = | 467) | ÷ | 469) |
| Jul 31, 2013 | 0.00 | = | —) | ÷ | 272) |
| Jul 31, 2012 | 0.00 | = | —) | ÷ | 229) |
Based on: 10-K (reporting date: 2026-07-31), 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 millions
The capital structure exhibits significant volatility between 2012 and 2026, characterized by a period of extreme leverage followed by a rapid expansion of the equity base. The financial trajectory indicates a shift from a moderately leveraged position to a high-risk debt profile, and finally to a highly conservative capital arrangement.
- Debt Obligations and Senior Notes
- Convertible senior notes were first recorded in 2014 at 467 million USD. Debt levels experienced a gradual increase until 2017, followed by a substantial surge to 1.92 billion USD in 2018. The debt load peaked in 2022 at 3.677 billion USD before undergoing a significant reduction to 964 million USD by 2024. A projected increase to 1.774 billion USD is noted for 2026.
- Stockholders' Equity Evolution
- Equity grew steadily from 229 million USD in 2012 to a peak of 1.586 billion USD in 2019. A sharp contraction occurred between 2020 and 2022, where equity plummeted to a low of 210 million USD. Following this trough, an exponential growth phase is observed, with equity rising to 5.17 billion USD in 2024 and reaching a projected 27.492 billion USD by 2026.
- Debt to Equity Ratio Trends
- The debt to equity ratio remained relatively stable around 1.00 between 2014 and 2015. A period of extreme leverage escalation occurred from 2020 to 2022, with the ratio climbing from 2.80 to a peak of 17.51, driven by the simultaneous increase in debt and the collapse of stockholders' equity. Subsequent years show a dramatic deleveraging trend, with the ratio falling to 0.19 in 2024 and projected to reach 0.06 by 2026, indicating a transition to an equity-dominated balance sheet.
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Comparison to Competitors
Palo Alto Networks Inc., debt to equity, long-term trends, comparison to competitors
| Palo Alto Networks Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Jul 31, 2026 | 0.06 | — | — | — | — | — | — | 0.40 | 0.24 | 3.05 | — | 0.25 | — | — | 0.38 |
| Jul 31, 2025 | 0.00 | 0.17 | 0.53 | 1.65 | 0.45 | 0.26 | 1.88 | 0.30 | 0.26 | 4.53 | 0.00 | 0.15 | 0.12 | 0.48 | 0.33 |
| Jul 31, 2024 | 0.19 | 0.04 | 0.40 | 3.22 | 0.53 | 0.59 | 2.01 | 0.33 | 0.29 | 9.98 | 0.00 | 0.17 | 0.15 | 0.00 | 0.37 |
| Jul 31, 2023 | 1.14 | 0.01 | 0.22 | 2.48 | 0.19 | 0.37 | 2.51 | 0.35 | 0.31 | 84.33 | 0.00 | 0.20 | 0.20 | 0.00 | 0.53 |
| Jul 31, 2022 | 17.51 | 0.00 | 0.29 | 1.69 | 0.27 | 0.52 | 2.32 | 0.42 | 0.39 | — | 0.00 | 0.19 | 0.30 | 0.00 | 0.41 |
| Jul 31, 2021 | 5.08 | 0.00 | 0.28 | 1.51 | 0.13 | 0.71 | 2.74 | 0.21 | 0.50 | 16.08 | 0.00 | 0.07 | 0.43 | 0.02 | 0.55 |
| Jul 31, 2020 | 2.80 | 0.00 | 0.31 | — | 0.14 | 0.60 | 2.99 | 0.66 | 0.62 | 5.93 | 0.13 | 0.09 | 0.58 | 0.03 | 0.51 |
| Jul 31, 2019 | 0.90 | 0.00 | 0.39 | — | 0.16 | 0.00 | 3.02 | 0.12 | 0.77 | 2.58 | — | 0.22 | 0.33 | 0.03 | 0.62 |
| Jul 31, 2018 | 1.99 | 0.00 | 0.44 | — | 0.35 | — | 2.73 | 0.19 | 0.97 | 1.33 | — | 0.21 | 0.60 | 0.13 | 0.94 |
| Jul 31, 2017 | 0.69 | 0.00 | 0.22 | — | 0.74 | — | 2.66 | 0.36 | 1.23 | 1.08 | — | 0.32 | 2.01 | 0.04 | 0.46 |
| Jul 31, 2016 | 0.64 | 0.00 | 0.26 | — | 0.93 | — | 2.31 | 0.86 | 0.76 | 0.93 | — | 0.36 | 1.31 | 0.06 | 0.45 |
| Jul 31, 2015 | 1.00 | 0.00 | 0.27 | — | 0.25 | — | 2.80 | 0.21 | 0.44 | 0.86 | — | 0.49 | 0.84 | 0.07 | 0.44 |
| Jul 31, 2014 | 1.00 | 0.00 | 0.22 | — | 0.52 | — | 3.44 | 0.16 | 0.25 | 0.52 | — | 0.79 | 1.04 | 0.02 | 0.41 |
| Jul 31, 2013 | 0.00 | 0.01 | 0.23 | — | 0.28 | — | 1.74 | 0.14 | 0.20 | 0.41 | — | 0.25 | 1.05 | 0.04 | 0.04 |
| Jul 31, 2012 | 0.00 | 0.00 | 0.23 | — | 0.49 | — | 1.76 | 0.18 | 0.18 | 0.38 | — | 0.35 | 0.00 | 0.05 | — |
Based on: 10-K (reporting date: 2026-07-31), 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., debt to equity, long-term trends, comparison to sector (software & services)
| Palo Alto Networks Inc. | Software & Services | |
|---|---|---|
| Jul 31, 2026 | 0.06 | — |
| Jul 31, 2025 | 0.00 | 0.49 |
| Jul 31, 2024 | 0.19 | 0.55 |
| Jul 31, 2023 | 1.14 | 0.64 |
| Jul 31, 2022 | 17.51 | 0.71 |
| Jul 31, 2021 | 5.08 | 0.83 |
| Jul 31, 2020 | 2.80 | 0.95 |
| Jul 31, 2019 | 0.90 | 1.04 |
| Jul 31, 2018 | 1.99 | 1.07 |
| Jul 31, 2017 | 0.69 | 1.14 |
| Jul 31, 2016 | 0.64 | 0.90 |
| Jul 31, 2015 | 1.00 | 0.73 |
| Jul 31, 2014 | 1.00 | 0.54 |
| Jul 31, 2013 | 0.00 | 0.46 |
| Jul 31, 2012 | 0.00 | 0.44 |
Based on: 10-K (reporting date: 2026-07-31), 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., debt to equity, long-term trends, comparison to industry (information technology)
| Palo Alto Networks Inc. | Information Technology | |
|---|---|---|
| Jul 31, 2026 | 0.06 | — |
| Jul 31, 2025 | 0.00 | 0.52 |
| Jul 31, 2024 | 0.19 | 0.61 |
| Jul 31, 2023 | 1.14 | 0.65 |
| Jul 31, 2022 | 17.51 | 0.70 |
| Jul 31, 2021 | 5.08 | 0.82 |
| Jul 31, 2020 | 2.80 | 0.95 |
| Jul 31, 2019 | 0.90 | 0.97 |
| Jul 31, 2018 | 1.99 | 0.82 |
| Jul 31, 2017 | 0.69 | 0.80 |
| Jul 31, 2016 | 0.64 | 0.65 |
| Jul 31, 2015 | 1.00 | 0.56 |
| Jul 31, 2014 | 1.00 | 0.38 |
| Jul 31, 2013 | 0.00 | 0.28 |
| Jul 31, 2012 | 0.00 | 0.24 |
Based on: 10-K (reporting date: 2026-07-31), 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).