Analysis of Geographic Areas
Palo Alto Networks Inc. operates in 2 regions: United States and Other countries.
Area Asset Turnover
Palo Alto Networks Inc., asset turnover by geographic area
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | |
|---|---|---|---|---|---|---|
| United States | 13.84 | 11.70 | 11.05 | 7.98 | 5.96 | 4.32 |
| Other countries | 10.86 | 9.39 | 11.35 | 12.63 | 12.55 | 11.86 |
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).
- United States Asset Turnover
- The asset turnover ratio in the United States demonstrates a consistent upward trajectory over the analyzed periods. Starting at 4.32 in 2020, the ratio increased steadily each year, reaching 5.96 in 2021 and 7.98 in 2022. This upward trend accelerated in subsequent years, climbing to 11.05 in 2023 and continuing to rise to 11.7 in 2024, with a projected further increase to 13.84 by 2025. The data reflects a significant improvement in the efficiency with which assets are utilized to generate revenue in the United States region.
- Other Countries Asset Turnover
- The asset turnover ratio for other countries presents a different pattern. Initially high at 11.86 in 2020, the ratio experienced a slight increase to 12.55 in 2021, followed by stabilization at 12.63 in 2022. However, starting from 2023, a declining trend emerged, with the ratio decreasing to 11.35 and continuing downward to 9.39 in 2024. A slight recovery is projected for 2025, with the ratio increasing to 10.86. Despite the initial higher ratios compared to the United States, the downward trend after 2022 suggests reduced efficiency in asset utilization in these regions, albeit with some improvement anticipated in the last observed period.
- Comparative Insights
- The United States shows a robust and accelerating improvement in asset turnover, suggesting enhanced operational efficiency or increased asset productivity over time. In contrast, other countries show higher turnover ratios initially but face a declining trend post-2022, indicating potential challenges in maintaining asset efficiency abroad. The divergence in trends points to a geographic shift where the United States market is becoming increasingly productive relative to other countries in the asset turnover metric.
Area Asset Turnover: United States
Palo Alto Networks Inc.; United States; area asset turnover calculation
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | 5,786,200) | 5,134,000) | 4,424,200) | 3,560,300) | 2,747,800) | 2,168,600) |
| Long-lived assets | 418,000) | 438,900) | 400,400) | 446,100) | 461,100) | 502,300) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 13.84 | 11.70 | 11.05 | 7.98 | 5.96 | 4.32 |
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).
1 2025 Calculation
Area asset turnover = Revenue ÷ Long-lived assets
= 5,786,200 ÷ 418,000 = 13.84
- Revenue Trends
- Revenue has demonstrated consistent and robust growth over the analyzed period. Beginning at approximately $2.168 billion in 2020, revenue increased annually to reach about $5.786 billion by 2025. This represents a compound expansion indicating strong market penetration or increased sales effectiveness within the United States geographic area.
- Long-lived Assets Evolution
- The value of long-lived assets exhibited a declining trend from $502.3 million in 2020 to $400.4 million in 2023, followed by a slight recovery peaking at $438.9 million in 2024, before a moderate decrease to $418.0 million in 2025. The overall trend suggests a reduction or cautious management of fixed assets over time, possibly reflecting asset optimization or depreciation effects.
- Area Asset Turnover Analysis
- The area asset turnover ratio displays a continuous upward trajectory, improving from 4.32 times in 2020 to 13.84 times in 2025. This indicates increasing efficiency in generating revenue from the assets deployed in the region. The rapid increase, particularly between 2021 and 2023, points to enhanced operational effectiveness or better utilization of assets to support the rising revenue.
- Integrated Insights
- The increase in revenue alongside a decreasing to moderately fluctuating long-lived asset base results in markedly improved asset turnover ratios. The company appears to be generating significantly more revenue per unit of long-lived asset over time, highlighting improved asset productivity and potentially a shift towards less asset-intensive growth. This strong upward trend in asset efficiency may also indicate successful strategic allocation of resources and effective management in the United States geographic area.
Area Asset Turnover: Other countries
Palo Alto Networks Inc.; Other countries; area asset turnover calculation
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | 3,435,300) | 2,893,500) | 2,468,500) | 1,941,200) | 1,508,300) | 1,239,800) |
| Long-lived assets | 316,300) | 308,100) | 217,400) | 153,700) | 120,200) | 104,500) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 10.86 | 9.39 | 11.35 | 12.63 | 12.55 | 11.86 |
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).
1 2025 Calculation
Area asset turnover = Revenue ÷ Long-lived assets
= 3,435,300 ÷ 316,300 = 10.86
The financial data for the "Other countries" geographic area reveals several noteworthy trends over the period from July 31, 2020 to July 31, 2025. A consistent upward trajectory is observed in revenue, which has grown significantly from 1,239,800 thousand US dollars in 2020 to a projected 3,435,300 thousand US dollars in 2025. This represents a near tripling of revenue within five years, indicating robust expansion in this geographic segment.
Long-lived assets also demonstrate a strong and steady increase over the same period, rising from 104,500 thousand US dollars in 2020 to a projected 316,300 thousand US dollars in 2025. The asset growth suggests substantial investment in fixed assets or infrastructure within the region, potentially to support the increasing revenue base and future operations.
The area asset turnover ratio, which measures the efficiency in generating revenue from long-lived assets, shows some fluctuation. Initially, it increased from 11.86 in 2020 to a peak of 12.63 in 2022, signaling improved asset utilization. However, from 2023 onward, the ratio declines to 9.39 in 2024 before slightly recovering to 10.86 in 2025. This pattern could imply that asset growth has outpaced revenue growth in the mid-term, resulting in decreased efficiency, though some operational improvement is visible in the final year.
- Revenue
- Significant growth over five years, nearly tripling from 1.24 billion to 3.44 billion US dollars.
- Long-lived Assets
- More than tripled, reflecting ongoing capital investment and asset expansion.
- Area Asset Turnover Ratio
- Initially increased, suggesting better asset utilization. Subsequently declined from 2023 to 2024, indicating reduced efficiency, but showed a modest rebound in 2025.
In summary, the financial data indicates a strong revenue growth trajectory accompanied by considerable asset investment in the "Other countries" area. While efficiency in asset use improved initially, it has softened in recent years, signaling the need to monitor how effectively the increased asset base contributes to revenue generation going forward.
Revenue
Palo Alto Networks Inc., revenue by geographic area
US$ in thousands
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | |
|---|---|---|---|---|---|---|
| United States | 5,786,200) | 5,134,000) | 4,424,200) | 3,560,300) | 2,747,800) | 2,168,600) |
| Other countries | 3,435,300) | 2,893,500) | 2,468,500) | 1,941,200) | 1,508,300) | 1,239,800) |
| Total | 9,221,500) | 8,027,500) | 6,892,700) | 5,501,500) | 4,256,100) | 3,408,400) |
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).
The revenue data presents a clear upward trend across all geographic areas over the analyzed periods.
- United States
- Revenue in the United States consistently increased each year, rising from $2,168,600 thousand in July 2020 to $5,786,200 thousand projected for July 2025. The growth appears to be robust, with notable acceleration after July 2021.
- Other countries
- Revenue from other countries also demonstrated steady growth, increasing from $1,239,800 thousand in July 2020 to a projected $3,435,300 thousand in July 2025. While growth is positive, the increase is less steep compared to the United States, though still significant.
- Total Revenue
- Total revenue, combining both regions, shows a consistent upward trajectory from $3,408,400 thousand in July 2020 to an estimated $9,221,500 thousand in July 2025. This indicates strong overall company expansion with an average annual increase across the periods.
- Trends and Insights
- The United States remains the largest revenue contributor, accounting for approximately 60-63% of total revenue over the years, though the share gradually declines as revenues in other countries increase. The continued growth in other countries suggests successful international market penetration. Overall, the data reflects a stable and growing revenue base, suggesting effective strategic execution and market demand expansion.
Long-lived assets
Palo Alto Networks Inc., long-lived assets by geographic area
US$ in thousands
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | |
|---|---|---|---|---|---|---|
| United States | 418,000) | 438,900) | 400,400) | 446,100) | 461,100) | 502,300) |
| Other countries | 316,300) | 308,100) | 217,400) | 153,700) | 120,200) | 104,500) |
| Total | 734,300) | 747,000) | 617,800) | 599,800) | 581,300) | 606,800) |
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).
- Trend in United States Long-Lived Assets
- The value of long-lived assets in the United States has shown a general decreasing trend over the observed period. Starting at $502,300 thousand in 2020, the assets declined to $418,000 thousand by 2025. Notably, the most significant reductions occurred between 2020 and 2023, with a partial recovery observed in 2024 before declining again slightly in 2025.
- Trend in Other Countries' Long-Lived Assets
- The value of long-lived assets located in other countries demonstrates a consistent and robust growth trajectory. Beginning at $104,500 thousand in 2020, this figure increased steadily every year, reaching $316,300 thousand by 2025. This reflects a more than threefold increase over the six-year span, indicating a strategic expansion or increased investment in non-U.S. regions.
- Total Long-Lived Assets Trend
- Total long-lived assets, combining U.S. and other countries’ assets, show an overall upward trend despite the decline in U.S. assets. The total value increased from $606,800 thousand in 2020 to a peak of $747,000 thousand in 2024 before experiencing a slight decrease to $734,300 thousand in 2025. This indicates that the growth in assets outside the United States has more than compensated for the reductions domestically.
- Key Insights
- The data suggests a strategic shift or diversification in asset allocation, with a decreasing reliance on assets based in the United States and a significant increase in assets in other regions. This shift has driven the overall growth in total long-lived assets during the period examined. The growth outside the U.S. reflects either geographic expansion or increased capital expenditure in foreign markets, while the contraction in U.S. assets might imply disposals, revaluation, or strategic realignment.