Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
Palo Alto Networks Inc., liquidity ratios (quarterly data)
Based on: 10-K (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-Q (reporting date: 2024-10-31), 10-K (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-Q (reporting date: 2023-10-31), 10-K (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-Q (reporting date: 2022-10-31), 10-K (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-Q (reporting date: 2021-10-31), 10-K (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31), 10-Q (reporting date: 2020-10-31), 10-K (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-Q (reporting date: 2020-01-31), 10-Q (reporting date: 2019-10-31).
- Current ratio
- The current ratio displays considerable fluctuation across the observed quarterly periods. Initially, the ratio starts at 1.78 and remains steady for two quarters before experiencing a decline to as low as 0.64 in January 2023. This indicates a contraction in short-term liquidity during that period. However, from early 2023 onwards, a gradual recovery trend is evident, with the ratio rising to 0.94 by October 2024. Despite this improvement, the values mostly stayed below one for a prolonged duration between mid-2020 and late 2023, suggesting periods where current liabilities exceeded current assets.
- Quick ratio
- The quick ratio follows a similar pattern to the current ratio, beginning at 1.64 and showing a decrease reaching a trough of around 0.58 in January 2023. This downward movement points to increasingly constrained liquidity when excluding inventory. Like the current ratio, the quick ratio also demonstrates signs of recovery thereafter, improving to 0.88 by October 2024. The ratio mostly remains below one during the middle periods, highlighting a tighter position in highly liquid assets relative to current liabilities during those quarters.
- Cash ratio
- The cash ratio exhibits the most pronounced decline among the liquidity ratios, starting from 1.39 and declining steadily to levels as low as 0.31 in July 2023. This suggests a weakening in immediate cash availability relative to current liabilities. Unlike the current and quick ratios, the cash ratio does not show a distinct upward trend in the latter periods, with values generally fluctuating between 0.34 and 0.52 and ending at 0.36 by October 2024. This pattern implies that while overall liquidity metrics improved somewhat, the company has maintained relatively low cash reserves compared to its near-term obligations.
Current Ratio
Palo Alto Networks Inc., current ratio calculation (quarterly data)
| Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||
| Current assets | |||||||||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||
| Current ratio1 | |||||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||||||||
| Accenture PLC | |||||||||||||||||||||||||||||||
| Adobe Inc. | |||||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | |||||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | |||||||||||||||||||||||||||||||
| Datadog Inc. | |||||||||||||||||||||||||||||||
| Fair Isaac Corp. | |||||||||||||||||||||||||||||||
| International Business Machines Corp. | |||||||||||||||||||||||||||||||
| Intuit Inc. | |||||||||||||||||||||||||||||||
| Microsoft Corp. | |||||||||||||||||||||||||||||||
| Oracle Corp. | |||||||||||||||||||||||||||||||
| Palantir Technologies Inc. | |||||||||||||||||||||||||||||||
| Salesforce Inc. | |||||||||||||||||||||||||||||||
| ServiceNow Inc. | |||||||||||||||||||||||||||||||
| Synopsys Inc. | |||||||||||||||||||||||||||||||
| Workday Inc. | |||||||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-Q (reporting date: 2024-10-31), 10-K (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-Q (reporting date: 2023-10-31), 10-K (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-Q (reporting date: 2022-10-31), 10-K (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-Q (reporting date: 2021-10-31), 10-K (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31), 10-Q (reporting date: 2020-10-31), 10-K (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-Q (reporting date: 2020-01-31), 10-Q (reporting date: 2019-10-31).
1 Q4 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The current assets exhibit a generally increasing trend over the observed periods. Starting from approximately 3,649,800 thousand USD in October 2019, the value sees fluctuations but progressively rises, reaching about 7,522,800 thousand USD in October 2024. Notable increments are observed especially after April 2022, with some volatility around mid-2023. This upward movement indicates a strengthening in the short-term resources available.
- Current Liabilities
- Current liabilities have shown considerable volatility, increasing from around 2,051,600 thousand USD in October 2019 to levels above 7,900,000 thousand USD by October 2024. There is an evident spike around January 2021 followed by fluctuations that remain at a high level relative to earlier periods. The liability profile suggests a substantial rise in obligations over time, which could indicate increased operational or financing activities requiring closer attention to debt management.
- Current Ratio
- The current ratio, which measures the company’s ability to cover short-term liabilities with short-term assets, declines from 1.78 in October 2019 to a low point around 0.64-0.7 in late 2022 and early 2023, signifying a reduced liquidity cushion during that timeframe. Subsequently, there is a modest recovery with ratios gradually improving to approximately 0.94 by October 2024. Despite this improvement, the current ratio remains below the initial levels, reflecting a tighter liquidity position and a potential need for careful working capital management.
Quick Ratio
Palo Alto Networks Inc., quick ratio calculation (quarterly data)
| Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||||||||||||
| Short-term investments | |||||||||||||||||||||||||||||||
| Accounts receivable, net of allowance for credit losses | |||||||||||||||||||||||||||||||
| Short-term financing receivables, net | |||||||||||||||||||||||||||||||
| Short-term deferred contract costs | |||||||||||||||||||||||||||||||
| Total quick assets | |||||||||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||
| Quick ratio1 | |||||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||||||||
| Accenture PLC | |||||||||||||||||||||||||||||||
| Adobe Inc. | |||||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | |||||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | |||||||||||||||||||||||||||||||
| Datadog Inc. | |||||||||||||||||||||||||||||||
| Fair Isaac Corp. | |||||||||||||||||||||||||||||||
| International Business Machines Corp. | |||||||||||||||||||||||||||||||
| Intuit Inc. | |||||||||||||||||||||||||||||||
| Microsoft Corp. | |||||||||||||||||||||||||||||||
| Oracle Corp. | |||||||||||||||||||||||||||||||
| Palantir Technologies Inc. | |||||||||||||||||||||||||||||||
| Salesforce Inc. | |||||||||||||||||||||||||||||||
| ServiceNow Inc. | |||||||||||||||||||||||||||||||
| Synopsys Inc. | |||||||||||||||||||||||||||||||
| Workday Inc. | |||||||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-Q (reporting date: 2024-10-31), 10-K (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-Q (reporting date: 2023-10-31), 10-K (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-Q (reporting date: 2022-10-31), 10-K (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-Q (reporting date: 2021-10-31), 10-K (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31), 10-Q (reporting date: 2020-10-31), 10-K (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-Q (reporting date: 2020-01-31), 10-Q (reporting date: 2019-10-31).
1 Q4 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets exhibit notable fluctuations across the reported periods. Initially, the value decreases from approximately 3.36 billion USD in October 2019 to around 2.71 billion USD in April 2020, followed by a significant rebound to nearly 6.09 billion USD in July 2022. Subsequently, a slight decline occurs, but the overall trend remains upward, reaching about 7.00 billion USD by July 2025. This pattern suggests periods of asset consolidation followed by aggressive asset accumulation over time.
- Current Liabilities
- Current liabilities display an increasing trend over the timeframe analyzed, starting at roughly 2.05 billion USD in October 2019 and rising steadily to nearly 8.00 billion USD by July 2025. A notable spike occurs between January 2021 and July 2021, where liabilities jump from approximately 4.38 billion to over 5.11 billion USD, continuing to escalate afterwards. This upward trajectory implies an expansion in short-term obligations, potentially reflecting increased operational or financing activities.
- Quick Ratio
- The quick ratio shows considerable variability, initially holding steady at 1.64 through early 2020, then declining sharply to 0.86 by July 2021 and maintaining values below 1.00 for several quarters. From mid-2022 onward, there is a gradual recovery in the quick ratio, climbing from 0.58 in January 2023 to 0.88 by July 2025. Despite this improvement, the ratio consistently remains below the earlier levels, indicating a reduced buffer of liquid assets relative to current liabilities throughout much of the period.
- Overall Analysis
- The data reflects an environment where quick assets have grown substantially over the years but have not consistently kept pace with rising current liabilities, resulting in quick ratios predominantly under 1.00 for an extended duration. The drop in the quick ratio during early 2021 coincides with significant increases in current liabilities, suggesting a potential tightening of liquidity conditions. However, the improving trend post-2022 indicates steps toward enhancing short-term financial stability, albeit at a level still below prior liquidity benchmarks. This pattern may warrant attention to managing liabilities and optimizing liquid asset levels to support operational resilience.
Cash Ratio
Palo Alto Networks Inc., cash ratio calculation (quarterly data)
| Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||||||||||||
| Short-term investments | |||||||||||||||||||||||||||||||
| Total cash assets | |||||||||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||
| Cash ratio1 | |||||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||||||||
| Accenture PLC | |||||||||||||||||||||||||||||||
| Adobe Inc. | |||||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | |||||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | |||||||||||||||||||||||||||||||
| Datadog Inc. | |||||||||||||||||||||||||||||||
| Fair Isaac Corp. | |||||||||||||||||||||||||||||||
| International Business Machines Corp. | |||||||||||||||||||||||||||||||
| Intuit Inc. | |||||||||||||||||||||||||||||||
| Microsoft Corp. | |||||||||||||||||||||||||||||||
| Oracle Corp. | |||||||||||||||||||||||||||||||
| Palantir Technologies Inc. | |||||||||||||||||||||||||||||||
| Salesforce Inc. | |||||||||||||||||||||||||||||||
| ServiceNow Inc. | |||||||||||||||||||||||||||||||
| Synopsys Inc. | |||||||||||||||||||||||||||||||
| Workday Inc. | |||||||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2025-07-31), 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-Q (reporting date: 2024-10-31), 10-K (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-Q (reporting date: 2023-10-31), 10-K (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-Q (reporting date: 2022-10-31), 10-K (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-Q (reporting date: 2021-10-31), 10-K (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31), 10-Q (reporting date: 2020-10-31), 10-K (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-Q (reporting date: 2020-01-31), 10-Q (reporting date: 2019-10-31).
1 Q4 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total cash assets
- The total cash assets exhibit notable fluctuations across the periods analyzed. Initially, there was a decline from approximately 3,133,900 thousand USD in January 2020 to a low of around 2,038,800 thousand USD in April 2020, followed by a recovery to about 3,747,800 thousand USD by July 2020. Subsequently, total cash assets maintained a range typically between 2,900,000 thousand USD and 3,900,000 thousand USD with some variability. A significant dip is observed in July 2023 with cash assets dropping to approximately 2,390,000 thousand USD, before recovering to values around 3,300,000 thousand USD by mid-2025. Overall, total cash assets show a pattern of volatility without a consistent upward or downward trend, indicating periods of liquidity changes possibly driven by operational needs or investment activities.
- Current liabilities
- Current liabilities present a generally increasing trend over the time frame. Starting at about 2,051,600 thousand USD in October 2019, liabilities rose sharply at the beginning of 2021 reaching peaks around 7,144,400 thousand USD in October 2021. From that point onward, liabilities fluctuate at high levels mostly between approximately 7,400,000 and 8,000,000 thousand USD. Although minor decreases occur at certain points, the sustained elevated liabilities suggest a growing short-term obligation burden, which could indicate increased operational leverage or temporary financing strategies.
- Cash ratio
- The cash ratio, measuring liquidity by comparing cash assets to current liabilities, demonstrates a clear declining trend. Early observations show a ratio exceeding 1.0, with values such as 1.39 in October 2019 and January 2020. However, there is a sharp decline in early 2021 with the ratio dropping as low as 0.31 by July 2023. Post-2023, the cash ratio remains below 0.5, fluctuating mildly but not recovering to previous higher liquidity levels. This decline indicates that the company holds less cash relative to its current liabilities over time, suggesting a tightening liquidity position and potentially increased reliance on other forms of current asset financing or increased risk in meeting short-term obligations.