Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Palo Alto Networks Inc., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Palo Alto Networks Inc. debt to equity ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Palo Alto Networks Inc. debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Palo Alto Networks Inc. debt to capital ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Palo Alto Networks Inc. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Palo Alto Networks Inc. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Palo Alto Networks Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Palo Alto Networks Inc. financial leverage ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Palo Alto Networks Inc. interest coverage ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Palo Alto Networks Inc. fixed charge coverage ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Debt to Equity
Palo Alto Networks Inc., debt to equity calculation, comparison to benchmarks
| Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | Jul 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current portion of convertible senior notes, net | 1,991,500) | 3,676,800) | 1,557,900) | —) | —) | 550,400) | |
| Convertible senior notes, net, excluding current portion | —) | —) | 1,668,100) | 3,084,100) | 1,430,000) | 1,369,700) | |
| Total debt | 1,991,500) | 3,676,800) | 3,226,000) | 3,084,100) | 1,430,000) | 1,920,100) | |
| Stockholders’ equity | 1,748,400) | 210,000) | 634,500) | 1,101,800) | 1,586,300) | 966,400) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 1.14 | 17.51 | 5.08 | 2.80 | 0.90 | 1.99 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Accenture PLC | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | 0.22 | 0.29 | 0.28 | 0.31 | 0.39 | 0.44 | |
| International Business Machines Corp. | 2.51 | 2.32 | 2.74 | 2.99 | 3.02 | — | |
| Intuit Inc. | 0.35 | 0.42 | 0.21 | 0.66 | 0.12 | 0.19 | |
| Microsoft Corp. | 0.31 | 0.39 | 0.50 | 0.62 | 0.77 | 0.97 | |
| Oracle Corp. | 84.33 | — | 16.08 | 5.93 | 2.58 | 1.33 | |
| Salesforce Inc. | 0.20 | 0.19 | 0.07 | 0.09 | 0.22 | — | |
| ServiceNow Inc. | 0.20 | 0.30 | 0.43 | 0.58 | 0.33 | — | |
| Synopsys Inc. | 0.00 | 0.00 | 0.02 | 0.03 | 0.03 | 0.13 | |
| Debt to Equity, Sector | |||||||
| Software & Services | 0.65 | 0.72 | 0.84 | 0.97 | 1.06 | — | |
| Debt to Equity, Industry | |||||||
| Information Technology | 0.63 | 0.67 | 0.77 | 0.88 | 0.88 | — | |
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).
1 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 1,991,500 ÷ 1,748,400 = 1.14
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Palo Alto Networks Inc. debt to equity ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Debt to Equity (including Operating Lease Liability)
Palo Alto Networks Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | Jul 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current portion of convertible senior notes, net | 1,991,500) | 3,676,800) | 1,557,900) | —) | —) | 550,400) | |
| Convertible senior notes, net, excluding current portion | —) | —) | 1,668,100) | 3,084,100) | 1,430,000) | 1,369,700) | |
| Total debt | 1,991,500) | 3,676,800) | 3,226,000) | 3,084,100) | 1,430,000) | 1,920,100) | |
| Current portion of operating lease liabilities (included in Accrued and other liabilities) | 60,200) | 62,300) | 65,800) | 57,900) | —) | —) | |
| Long-term operating lease liabilities | 279,200) | 276,100) | 313,400) | 336,600) | —) | —) | |
| Total debt (including operating lease liability) | 2,330,900) | 4,015,200) | 3,605,200) | 3,478,600) | 1,430,000) | 1,920,100) | |
| Stockholders’ equity | 1,748,400) | 210,000) | 634,500) | 1,101,800) | 1,586,300) | 966,400) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 1.33 | 19.12 | 5.68 | 3.16 | 0.90 | 1.99 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | 0.12 | 0.15 | 0.18 | 0.21 | 0.00 | 0.00 | |
| Adobe Inc. | 0.25 | 0.33 | 0.32 | 0.35 | 0.39 | 0.44 | |
| International Business Machines Corp. | 2.66 | 2.46 | 2.92 | 3.23 | 3.27 | — | |
| Intuit Inc. | 0.39 | 0.46 | 0.25 | 0.71 | 0.12 | 0.19 | |
| Microsoft Corp. | 0.39 | 0.47 | 0.58 | 0.69 | 0.84 | 1.06 | |
| Oracle Corp. | 88.84 | — | 16.61 | 6.10 | 2.58 | 1.33 | |
| Salesforce Inc. | 0.25 | 0.25 | 0.15 | 0.18 | 0.22 | — | |
| ServiceNow Inc. | 0.30 | 0.44 | 0.60 | 0.75 | 0.53 | — | |
| Synopsys Inc. | 0.11 | 0.12 | 0.13 | 0.14 | 0.03 | 0.13 | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Software & Services | 0.74 | 0.82 | 0.95 | 1.08 | 1.12 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.69 | 0.73 | 0.84 | 0.95 | 0.90 | — | |
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).
1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 2,330,900 ÷ 1,748,400 = 1.33
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Palo Alto Networks Inc. debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Debt to Capital
Palo Alto Networks Inc., debt to capital calculation, comparison to benchmarks
| Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | Jul 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current portion of convertible senior notes, net | 1,991,500) | 3,676,800) | 1,557,900) | —) | —) | 550,400) | |
| Convertible senior notes, net, excluding current portion | —) | —) | 1,668,100) | 3,084,100) | 1,430,000) | 1,369,700) | |
| Total debt | 1,991,500) | 3,676,800) | 3,226,000) | 3,084,100) | 1,430,000) | 1,920,100) | |
| Stockholders’ equity | 1,748,400) | 210,000) | 634,500) | 1,101,800) | 1,586,300) | 966,400) | |
| Total capital | 3,739,900) | 3,886,800) | 3,860,500) | 4,185,900) | 3,016,300) | 2,886,500) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.53 | 0.95 | 0.84 | 0.74 | 0.47 | 0.67 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Accenture PLC | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | 0.18 | 0.23 | 0.22 | 0.24 | 0.28 | 0.31 | |
| International Business Machines Corp. | 0.72 | 0.70 | 0.73 | 0.75 | 0.75 | — | |
| Intuit Inc. | 0.26 | 0.30 | 0.17 | 0.40 | 0.10 | 0.16 | |
| Microsoft Corp. | 0.24 | 0.28 | 0.33 | 0.38 | 0.43 | 0.49 | |
| Oracle Corp. | 0.99 | 1.09 | 0.94 | 0.86 | 0.72 | 0.57 | |
| Salesforce Inc. | 0.16 | 0.16 | 0.06 | 0.08 | 0.18 | — | |
| ServiceNow Inc. | 0.16 | 0.23 | 0.30 | 0.37 | 0.25 | — | |
| Synopsys Inc. | 0.00 | 0.00 | 0.02 | 0.03 | 0.03 | 0.12 | |
| Debt to Capital, Sector | |||||||
| Software & Services | 0.39 | 0.42 | 0.46 | 0.49 | 0.51 | — | |
| Debt to Capital, Industry | |||||||
| Information Technology | 0.38 | 0.40 | 0.43 | 0.47 | 0.47 | — | |
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).
1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 1,991,500 ÷ 3,739,900 = 0.53
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Palo Alto Networks Inc. debt to capital ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Debt to Capital (including Operating Lease Liability)
Palo Alto Networks Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | Jul 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current portion of convertible senior notes, net | 1,991,500) | 3,676,800) | 1,557,900) | —) | —) | 550,400) | |
| Convertible senior notes, net, excluding current portion | —) | —) | 1,668,100) | 3,084,100) | 1,430,000) | 1,369,700) | |
| Total debt | 1,991,500) | 3,676,800) | 3,226,000) | 3,084,100) | 1,430,000) | 1,920,100) | |
| Current portion of operating lease liabilities (included in Accrued and other liabilities) | 60,200) | 62,300) | 65,800) | 57,900) | —) | —) | |
| Long-term operating lease liabilities | 279,200) | 276,100) | 313,400) | 336,600) | —) | —) | |
| Total debt (including operating lease liability) | 2,330,900) | 4,015,200) | 3,605,200) | 3,478,600) | 1,430,000) | 1,920,100) | |
| Stockholders’ equity | 1,748,400) | 210,000) | 634,500) | 1,101,800) | 1,586,300) | 966,400) | |
| Total capital (including operating lease liability) | 4,079,300) | 4,225,200) | 4,239,700) | 4,580,400) | 3,016,300) | 2,886,500) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.57 | 0.95 | 0.85 | 0.76 | 0.47 | 0.67 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | 0.11 | 0.13 | 0.15 | 0.17 | 0.00 | 0.00 | |
| Adobe Inc. | 0.20 | 0.25 | 0.24 | 0.26 | 0.28 | 0.31 | |
| International Business Machines Corp. | 0.73 | 0.71 | 0.74 | 0.76 | 0.77 | — | |
| Intuit Inc. | 0.28 | 0.31 | 0.20 | 0.42 | 0.10 | 0.16 | |
| Microsoft Corp. | 0.28 | 0.32 | 0.37 | 0.41 | 0.46 | 0.51 | |
| Oracle Corp. | 0.99 | 1.08 | 0.94 | 0.86 | 0.72 | 0.57 | |
| Salesforce Inc. | 0.20 | 0.20 | 0.13 | 0.16 | 0.18 | — | |
| ServiceNow Inc. | 0.23 | 0.31 | 0.37 | 0.43 | 0.35 | — | |
| Synopsys Inc. | 0.10 | 0.11 | 0.11 | 0.12 | 0.03 | 0.12 | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Software & Services | 0.43 | 0.45 | 0.49 | 0.52 | 0.53 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.41 | 0.42 | 0.46 | 0.49 | 0.47 | — | |
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).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 2,330,900 ÷ 4,079,300 = 0.57
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Palo Alto Networks Inc. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Debt to Assets
Palo Alto Networks Inc., debt to assets calculation, comparison to benchmarks
| Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | Jul 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current portion of convertible senior notes, net | 1,991,500) | 3,676,800) | 1,557,900) | —) | —) | 550,400) | |
| Convertible senior notes, net, excluding current portion | —) | —) | 1,668,100) | 3,084,100) | 1,430,000) | 1,369,700) | |
| Total debt | 1,991,500) | 3,676,800) | 3,226,000) | 3,084,100) | 1,430,000) | 1,920,100) | |
| Total assets | 14,501,100) | 12,253,600) | 10,241,600) | 9,065,400) | 6,592,200) | 5,823,000) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.14 | 0.30 | 0.31 | 0.34 | 0.22 | 0.33 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Accenture PLC | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Adobe Inc. | 0.12 | 0.15 | 0.15 | 0.17 | 0.20 | 0.22 | |
| International Business Machines Corp. | 0.42 | 0.40 | 0.39 | 0.39 | 0.41 | — | |
| Intuit Inc. | 0.22 | 0.25 | 0.13 | 0.31 | 0.07 | 0.08 | |
| Microsoft Corp. | 0.16 | 0.18 | 0.21 | 0.24 | 0.27 | 0.31 | |
| Oracle Corp. | 0.67 | 0.69 | 0.64 | 0.62 | 0.52 | 0.44 | |
| Salesforce Inc. | 0.12 | 0.12 | 0.04 | 0.06 | 0.11 | — | |
| ServiceNow Inc. | 0.09 | 0.11 | 0.15 | 0.19 | 0.12 | — | |
| Synopsys Inc. | 0.00 | 0.00 | 0.01 | 0.02 | 0.02 | 0.08 | |
| Debt to Assets, Sector | |||||||
| Software & Services | 0.25 | 0.26 | 0.28 | 0.31 | 0.32 | — | |
| Debt to Assets, Industry | |||||||
| Information Technology | 0.26 | 0.26 | 0.28 | 0.30 | 0.31 | — | |
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).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 1,991,500 ÷ 14,501,100 = 0.14
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Palo Alto Networks Inc. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets (including Operating Lease Liability)
Palo Alto Networks Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | Jul 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current portion of convertible senior notes, net | 1,991,500) | 3,676,800) | 1,557,900) | —) | —) | 550,400) | |
| Convertible senior notes, net, excluding current portion | —) | —) | 1,668,100) | 3,084,100) | 1,430,000) | 1,369,700) | |
| Total debt | 1,991,500) | 3,676,800) | 3,226,000) | 3,084,100) | 1,430,000) | 1,920,100) | |
| Current portion of operating lease liabilities (included in Accrued and other liabilities) | 60,200) | 62,300) | 65,800) | 57,900) | —) | —) | |
| Long-term operating lease liabilities | 279,200) | 276,100) | 313,400) | 336,600) | —) | —) | |
| Total debt (including operating lease liability) | 2,330,900) | 4,015,200) | 3,605,200) | 3,478,600) | 1,430,000) | 1,920,100) | |
| Total assets | 14,501,100) | 12,253,600) | 10,241,600) | 9,065,400) | 6,592,200) | 5,823,000) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.16 | 0.33 | 0.35 | 0.38 | 0.22 | 0.33 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Accenture PLC | 0.06 | 0.07 | 0.08 | 0.09 | 0.00 | 0.00 | |
| Adobe Inc. | 0.14 | 0.17 | 0.17 | 0.19 | 0.20 | 0.22 | |
| International Business Machines Corp. | 0.44 | 0.42 | 0.42 | 0.43 | 0.45 | — | |
| Intuit Inc. | 0.24 | 0.27 | 0.16 | 0.33 | 0.07 | 0.08 | |
| Microsoft Corp. | 0.19 | 0.21 | 0.25 | 0.27 | 0.30 | 0.34 | |
| Oracle Corp. | 0.71 | 0.73 | 0.66 | 0.64 | 0.52 | 0.44 | |
| Salesforce Inc. | 0.15 | 0.15 | 0.10 | 0.11 | 0.11 | — | |
| ServiceNow Inc. | 0.13 | 0.17 | 0.21 | 0.24 | 0.19 | — | |
| Synopsys Inc. | 0.07 | 0.07 | 0.08 | 0.08 | 0.02 | 0.08 | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Software & Services | 0.29 | 0.30 | 0.32 | 0.34 | 0.34 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.28 | 0.29 | 0.31 | 0.33 | 0.32 | — | |
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).
1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 2,330,900 ÷ 14,501,100 = 0.16
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Palo Alto Networks Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Financial Leverage
Palo Alto Networks Inc., financial leverage calculation, comparison to benchmarks
| Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | Jul 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Total assets | 14,501,100) | 12,253,600) | 10,241,600) | 9,065,400) | 6,592,200) | 5,823,000) | |
| Stockholders’ equity | 1,748,400) | 210,000) | 634,500) | 1,101,800) | 1,586,300) | 966,400) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 8.29 | 58.35 | 16.14 | 8.23 | 4.16 | 6.03 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Accenture PLC | 1.99 | 2.14 | 2.21 | 2.18 | 2.07 | 2.36 | |
| Adobe Inc. | 1.80 | 1.93 | 1.84 | 1.83 | 1.97 | 2.00 | |
| International Business Machines Corp. | 6.00 | 5.80 | 6.98 | 7.57 | 7.30 | — | |
| Intuit Inc. | 1.61 | 1.69 | 1.57 | 2.14 | 1.68 | 2.20 | |
| Microsoft Corp. | 2.00 | 2.19 | 2.35 | 2.55 | 2.80 | 3.13 | |
| Oracle Corp. | 125.24 | — | 25.03 | 9.56 | 4.99 | 3.00 | |
| Salesforce Inc. | 1.69 | 1.64 | 1.60 | 1.63 | 1.97 | — | |
| ServiceNow Inc. | 2.28 | 2.64 | 2.92 | 3.07 | 2.83 | — | |
| Synopsys Inc. | 1.68 | 1.71 | 1.65 | 1.64 | 1.57 | 1.77 | |
| Financial Leverage, Sector | |||||||
| Software & Services | 2.56 | 2.74 | 2.98 | 3.17 | 3.32 | — | |
| Financial Leverage, Industry | |||||||
| Information Technology | 2.44 | 2.56 | 2.72 | 2.90 | 2.87 | — | |
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).
1 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 14,501,100 ÷ 1,748,400 = 8.29
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Palo Alto Networks Inc. financial leverage ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
Interest Coverage
Palo Alto Networks Inc., interest coverage calculation, comparison to benchmarks
| Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | Jul 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income (loss) | 439,700) | (267,000) | (498,900) | (267,000) | (81,900) | (147,900) | |
| Add: Income tax expense | 126,600) | 59,800) | 33,900) | 35,200) | 7,300) | 17,700) | |
| Add: Interest expense | 27,200) | 27,400) | 163,300) | 88,700) | 83,900) | 29,600) | |
| Earnings before interest and tax (EBIT) | 593,500) | (179,800) | (301,700) | (143,100) | 9,300) | (100,600) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 21.82 | -6.56 | -1.85 | -1.61 | 0.11 | -3.40 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Accenture PLC | 193.31 | 195.34 | 131.46 | 205.84 | 273.26 | 298.26 | |
| Adobe Inc. | 61.17 | 54.64 | 51.49 | 37.00 | 21.38 | 32.31 | |
| International Business Machines Corp. | 6.42 | 1.97 | 5.20 | 4.62 | 8.58 | — | |
| Intuit Inc. | 13.05 | 32.38 | 89.14 | 158.00 | 126.40 | 76.15 | |
| Microsoft Corp. | 46.38 | 41.58 | 31.31 | 21.47 | 17.27 | 14.35 | |
| Oracle Corp. | 3.65 | 3.84 | 6.28 | 7.13 | 6.97 | 7.43 | |
| Salesforce Inc. | 3.30 | 8.09 | 24.28 | 7.42 | 8.80 | — | |
| ServiceNow Inc. | 43.00 | 15.78 | 9.89 | 5.56 | 3.02 | — | |
| Synopsys Inc. | 1,106.08 | 657.96 | 240.38 | 125.16 | 47.79 | 24.29 | |
| Interest Coverage, Sector | |||||||
| Software & Services | 17.58 | 18.31 | 17.65 | 14.44 | 13.06 | — | |
| Interest Coverage, Industry | |||||||
| Information Technology | 18.91 | 24.76 | 22.93 | 16.69 | 15.79 | — | |
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).
1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 593,500 ÷ 27,200 = 21.82
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Palo Alto Networks Inc. interest coverage ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Fixed Charge Coverage
Palo Alto Networks Inc., fixed charge coverage calculation, comparison to benchmarks
| Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | Jul 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income (loss) | 439,700) | (267,000) | (498,900) | (267,000) | (81,900) | (147,900) | |
| Add: Income tax expense | 126,600) | 59,800) | 33,900) | 35,200) | 7,300) | 17,700) | |
| Add: Interest expense | 27,200) | 27,400) | 163,300) | 88,700) | 83,900) | 29,600) | |
| Earnings before interest and tax (EBIT) | 593,500) | (179,800) | (301,700) | (143,100) | 9,300) | (100,600) | |
| Add: Operating lease costs | 64,200) | 67,600) | 59,300) | 63,500) | 43,000) | 35,200) | |
| Earnings before fixed charges and tax | 657,700) | (112,200) | (242,400) | (79,600) | 52,300) | (65,400) | |
| Interest expense | 27,200) | 27,400) | 163,300) | 88,700) | 83,900) | 29,600) | |
| Operating lease costs | 64,200) | 67,600) | 59,300) | 63,500) | 43,000) | 35,200) | |
| Fixed charges | 91,400) | 95,000) | 222,600) | 152,200) | 126,900) | 64,800) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 7.20 | -1.18 | -1.09 | -0.52 | 0.41 | -1.01 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Accenture PLC | 10.98 | 12.25 | 10.41 | 9.66 | 10.07 | 9.63 | |
| Adobe Inc. | 30.56 | 26.79 | 25.59 | 18.77 | 10.78 | 13.34 | |
| International Business Machines Corp. | 4.32 | 1.52 | 3.13 | 2.62 | 4.41 | — | |
| Intuit Inc. | 9.03 | 14.67 | 25.58 | 27.48 | 34.00 | 26.91 | |
| Microsoft Corp. | 19.44 | 19.50 | 16.90 | 12.44 | 10.94 | 9.45 | |
| Oracle Corp. | 3.12 | 3.22 | 5.17 | 5.68 | 5.50 | 6.38 | |
| Salesforce Inc. | 1.52 | 2.18 | 2.94 | 1.69 | 3.00 | — | |
| ServiceNow Inc. | 7.59 | 3.87 | 2.95 | 2.29 | 1.69 | — | |
| Synopsys Inc. | 14.38 | 12.91 | 9.29 | 7.46 | 6.30 | 4.98 | |
| Fixed Charge Coverage, Sector | |||||||
| Software & Services | 9.66 | 9.60 | 9.43 | 7.69 | 7.58 | — | |
| Fixed Charge Coverage, Industry | |||||||
| Information Technology | 12.67 | 14.28 | 13.50 | 10.20 | 10.46 | — | |
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).
1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 657,700 ÷ 91,400 = 7.20
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Palo Alto Networks Inc. fixed charge coverage ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |