Return on Equity (ROE)
since 2012
Calculation
Palo Alto Networks Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Jul 31, 2024 | 49.86% | = | 100 | × | 2,577,600) | ÷ | 5,169,700) |
| Jul 31, 2023 | 25.15% | = | 100 | × | 439,700) | ÷ | 1,748,400) |
| Jul 31, 2022 | -127.14% | = | 100 | × | (267,000) | ÷ | 210,000) |
| Jul 31, 2021 | -78.63% | = | 100 | × | (498,900) | ÷ | 634,500) |
| Jul 31, 2020 | -24.23% | = | 100 | × | (267,000) | ÷ | 1,101,800) |
| Jul 31, 2019 | -5.16% | = | 100 | × | (81,900) | ÷ | 1,586,300) |
| Jul 31, 2018 | -15.30% | = | 100 | × | (147,900) | ÷ | 966,400) |
| Jul 31, 2017 | -28.52% | = | 100 | × | (216,600) | ÷ | 759,600) |
| Jul 31, 2016 | -28.60% | = | 100 | × | (225,900) | ÷ | 789,900) |
| Jul 31, 2015 | -33.81% | = | 100 | × | (164,982) | ÷ | 487,899) |
| Jul 31, 2014 | -48.33% | = | 100 | × | (226,452) | ÷ | 468,583) |
| Jul 31, 2013 | -10.74% | = | 100 | × | (29,246) | ÷ | 272,420) |
| Jul 31, 2012 | 0.32% | = | 100 | × | 737) | ÷ | 229,071) |
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
Over the observed periods, net income (loss) demonstrates significant volatility with a general trend of deep losses from 2013 through 2022, followed by a marked improvement in the last two years. Initially positive in 2012 with a small net income, the company experienced increasing losses peaking in 2021. However, a substantial turnaround occurred in 2023 and 2024, with net income shifting to large positive figures, suggesting a substantial revival in profitability.
Stockholders’ equity exhibits a strong upward trajectory overall, despite some fluctuations. Beginning at a moderate level in 2012, equity rose steadily until 2016, followed by some periods of slower growth and temporary declines. From 2019 onward, equity saw significant growth again, culminating in a sharp increase by 2024. This increase in equity, particularly in the latest period, reflects either retained earnings growth or additional equity financing supporting the company's financial position.
Return on equity (ROE) correlates closely with net income trends, highlighting profitability challenges in most years up to 2022. ROE was positive but very low in 2012 and then turned sharply negative for several years, reaching an extreme negative value in 2021, indicative of considerable net losses relative to shareholders’ equity during that time. The recovery in net income is mirrored in ROE, which becomes positive again in 2023 and shows a substantial increase in 2024, denoting improved profit generation efficiency relative to equity.
In summary, the company experienced a prolonged period of financial losses and negative returns on equity, despite an increasing equity base, until a notable profitability recovery in the last two years. The recent positive performance in net income and ROE, alongside growing stockholders’ equity, suggests strengthening financial health and effective capital utilization going forward.
Comparison to Competitors
Palo Alto Networks Inc., ROE, long-term trends, comparison to competitors
| Palo Alto Networks Inc. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Jul 31, 2024 | 49.86% | 25.68% | 39.42% | 22.58% | 3.88% | 22.06% | 16.07% | 32.83% | 120.26% | 9.24% | 6.93% | 14.83% | 25.17% | 17.09% |
| Jul 31, 2023 | 25.15% | 26.75% | 32.86% | 30.58% | -12.52% | 33.29% | 13.81% | 35.09% | 792.45% | 6.04% | 0.36% | 22.69% | 20.01% | -6.57% |
| Jul 31, 2022 | -127.14% | 31.11% | 33.85% | 30.93% | -22.89% | 7.47% | 12.57% | 43.68% | — | -14.57% | 2.48% | 6.46% | 17.85% | 0.65% |
| Jul 31, 2021 | -78.63% | 30.25% | 32.59% | 25.39% | -10.64% | 30.38% | 20.89% | 43.15% | 262.43% | -22.71% | 9.81% | 6.22% | 14.31% | -8.62% |
| Jul 31, 2020 | -24.23% | 30.05% | 39.66% | 23.69% | -19.10% | 27.14% | 35.76% | 37.43% | 83.94% | -76.61% | 0.37% | 4.18% | 13.54% | -19.33% |
| Jul 31, 2019 | -5.16% | 33.17% | 28.03% | 47.03% | — | 45.25% | 41.53% | 38.35% | 50.87% | — | 7.11% | 29.45% | 13.04% | -21.36% |
| Jul 31, 2018 | -15.30% | 39.17% | 27.67% | 26.84% | — | 51.96% | 51.44% | 20.03% | 8.37% | — | 1.36% | -2.40% | 12.43% | -20.33% |
| Jul 31, 2017 | -28.52% | 38.50% | 20.02% | 20.63% | — | 32.70% | 71.71% | 29.29% | 17.33% | — | 2.40% | -25.53% | 4.17% | -35.11% |
| Jul 31, 2016 | -28.60% | 54.42% | 15.74% | 27.38% | — | 65.07% | 84.32% | 23.33% | 18.82% | — | -0.95% | -116.76% | 8.35% | -25.52% |
| Jul 31, 2015 | -33.81% | 49.78% | 8.99% | 18.34% | — | 92.48% | 15.65% | 15.23% | 20.42% | — | -6.61% | -35.01% | 7.21% | -22.02% |
| Jul 31, 2014 | -48.33% | 51.32% | 3.96% | 11.92% | — | 101.30% | 29.47% | 24.59% | 23.37% | — | -7.64% | -41.85% | 8.48% | -14.53% |
| Jul 31, 2013 | -10.74% | 66.16% | 4.31% | 14.21% | — | 72.32% | 24.30% | 27.69% | 24.47% | — | -11.67% | -18.70% | 8.89% | -20.12% |
| Jul 31, 2012 | 0.32% | 61.59% | 12.49% | 48.07% | — | 88.04% | 28.86% | 25.58% | 22.85% | — | -0.73% | -15.34% | 7.29% | — |
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., ROE, long-term trends, comparison to sector (software & services)
| Palo Alto Networks Inc. | Software & Services | |
|---|---|---|
| Jul 31, 2024 | 49.86% | 28.54% |
| Jul 31, 2023 | 25.15% | 28.47% |
| Jul 31, 2022 | -127.14% | 31.01% |
| Jul 31, 2021 | -78.63% | 36.18% |
| Jul 31, 2020 | -24.23% | 30.32% |
| Jul 31, 2019 | -5.16% | 35.70% |
| Jul 31, 2018 | -15.30% | 20.20% |
| Jul 31, 2017 | -28.52% | 23.83% |
| Jul 31, 2016 | -28.60% | 26.25% |
| Jul 31, 2015 | -33.81% | 23.04% |
| Jul 31, 2014 | -48.33% | 28.09% |
| Jul 31, 2013 | -10.74% | 31.71% |
| Jul 31, 2012 | 0.32% | 32.66% |
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., ROE, long-term trends, comparison to industry (information technology)
| Palo Alto Networks Inc. | Information Technology | |
|---|---|---|
| Jul 31, 2024 | 49.86% | 29.38% |
| Jul 31, 2023 | 25.15% | 31.90% |
| Jul 31, 2022 | -127.14% | 39.03% |
| Jul 31, 2021 | -78.63% | 42.37% |
| Jul 31, 2020 | -24.23% | 35.70% |
| Jul 31, 2019 | -5.16% | 36.62% |
| Jul 31, 2018 | -15.30% | 30.36% |
| Jul 31, 2017 | -28.52% | 23.39% |
| Jul 31, 2016 | -28.60% | 23.35% |
| Jul 31, 2015 | -33.81% | 26.16% |
| Jul 31, 2014 | -48.33% | 25.60% |
| Jul 31, 2013 | -10.74% | 24.88% |
| Jul 31, 2012 | 0.32% | 26.23% |
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).