Stock Analysis on Net
Stock Analysis on Net

Palo Alto Networks Inc. (NASDAQ:PANW)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Palo Alto Networks Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Jul 31, 2023 25.15% = 3.03% × 8.29
Jul 31, 2022 -127.14% = -2.18% × 58.35
Jul 31, 2021 -78.63% = -4.87% × 16.14
Jul 31, 2020 -24.23% = -2.95% × 8.23
Jul 31, 2019 -5.16% = -1.24% × 4.16
Jul 31, 2018 -15.30% = -2.54% × 6.03

Based on: 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).

Three-Component Disaggregation of ROE

Palo Alto Networks Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Jul 31, 2023 25.15% = 6.38% × 0.48 × 8.29
Jul 31, 2022 -127.14% = -4.85% × 0.45 × 58.35
Jul 31, 2021 -78.63% = -11.72% × 0.42 × 16.14
Jul 31, 2020 -24.23% = -7.83% × 0.38 × 8.23
Jul 31, 2019 -5.16% = -2.82% × 0.44 × 4.16
Jul 31, 2018 -15.30% = -6.51% × 0.39 × 6.03

Based on: 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).

Five-Component Disaggregation of ROE

Palo Alto Networks Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Jul 31, 2023 25.15% = 0.78 × 0.95 × 8.61% × 0.48 × 8.29
Jul 31, 2022 -127.14% = — × — × -3.27% × 0.45 × 58.35
Jul 31, 2021 -78.63% = — × — × -7.09% × 0.42 × 16.14
Jul 31, 2020 -24.23% = — × — × -4.20% × 0.38 × 8.23
Jul 31, 2019 -5.16% = — × -8.02 × 0.32% × 0.44 × 4.16
Jul 31, 2018 -15.30% = — × — × -4.43% × 0.39 × 6.03

Based on: 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).

Two-Component Disaggregation of ROA

Palo Alto Networks Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Jul 31, 2023 3.03% = 6.38% × 0.48
Jul 31, 2022 -2.18% = -4.85% × 0.45
Jul 31, 2021 -4.87% = -11.72% × 0.42
Jul 31, 2020 -2.95% = -7.83% × 0.38
Jul 31, 2019 -1.24% = -2.82% × 0.44
Jul 31, 2018 -2.54% = -6.51% × 0.39

Based on: 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).

Four-Component Disaggregation of ROA

Palo Alto Networks Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Jul 31, 2023 3.03% = 0.78 × 0.95 × 8.61% × 0.48
Jul 31, 2022 -2.18% = — × — × -3.27% × 0.45
Jul 31, 2021 -4.87% = — × — × -7.09% × 0.42
Jul 31, 2020 -2.95% = — × — × -4.20% × 0.38
Jul 31, 2019 -1.24% = — × -8.02 × 0.32% × 0.44
Jul 31, 2018 -2.54% = — × — × -4.43% × 0.39

Based on: 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).

Disaggregation of Net Profit Margin

Palo Alto Networks Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Jul 31, 2023 6.38% = 0.78 × 0.95 × 8.61%
Jul 31, 2022 -4.85% = — × — × -3.27%
Jul 31, 2021 -11.72% = — × — × -7.09%
Jul 31, 2020 -7.83% = — × — × -4.20%
Jul 31, 2019 -2.82% = — × -8.02 × 0.32%
Jul 31, 2018 -6.51% = — × — × -4.43%

Based on: 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).