Stock Analysis on Net

Palo Alto Networks Inc. (NASDAQ:PANW)

$24.99

Total Asset Turnover
since 2012

Microsoft Excel

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Calculation

Palo Alto Networks Inc., total asset turnover, long-term trends, calculation

Microsoft Excel

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


Revenue
There is a clear and consistent upward trend in revenue over the entire period. Starting from approximately $255 million in 2012, revenue increased steadily each year, reaching $8.03 billion by 2024. Notable growth acceleration occurred between 2014 and 2016, with revenue more than doubling in that timeframe. Subsequent years also show strong annual growth, indicating successful market expansion and perhaps new product adoption.
Total Assets
Total assets show a pronounced upward trajectory, increasing from around $408 million in 2012 to nearly $20 billion in 2024. The growth accelerated particularly after 2016, with assets more than doubling from approximately $2.76 billion in 2016 to $5.82 billion in 2018, and continuing to increase substantially thereafter. This suggests significant investments and expansion in the company's asset base, potentially through acquisitions, capital expenditures, or increased working capital.
Total Asset Turnover
The total asset turnover ratio exhibits considerable fluctuation over the period. It started at 0.63 in 2012, declined to lower levels around 0.4 to 0.5 in the mid-2010s, reaching a trough of 0.38 in 2020. Despite some recovery to 0.48 in 2023, it slightly declined again to 0.4 in 2024. Overall, the ratio has decreased compared to the earliest years, indicating that the growth of assets has outpaced revenue growth, resulting in less efficient utilization of assets in generating revenue over time.
Summary
The company demonstrates strong revenue growth alongside a rapidly expanding asset base. However, the declining trend in asset turnover ratio suggests that revenue generation efficiency relative to asset investments has diminished. This may reflect strategic investments in infrastructure, technology, or market positioning, which have not yet fully translated into proportionate revenue increases. Monitoring asset efficiency alongside continued revenue growth will be critical in assessing long-term operational effectiveness.

Comparison to Competitors

Palo Alto Networks Inc., total asset turnover, long-term trends, comparison to competitors

Microsoft Excel

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., total asset turnover, long-term trends, comparison to sector (software & services)

Microsoft Excel

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., total asset turnover, long-term trends, comparison to industry (information technology)

Microsoft Excel

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).