Stock Analysis on Net
Stock Analysis on Net

Palo Alto Networks Inc. (NASDAQ:PANW)

$24.99

Analysis of Long-term (Investment) Activity Ratios

Microsoft Excel

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

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Long-term Activity Ratios (Summary)

Palo Alto Networks Inc., long-term (investment) activity ratios

Microsoft Excel
Jul 31, 2025 Jul 31, 2024 Jul 31, 2023 Jul 31, 2022 Jul 31, 2021 Jul 31, 2020
Net fixed asset turnover
Net fixed asset turnover (including operating lease, right-of-use asset)
Total asset turnover
Equity turnover

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).

Net Fixed Asset Turnover
The net fixed asset turnover ratio exhibited a consistent upward trend from 9.79 in 2020 to an estimated 23.81 in 2025. This indicates increasing efficiency in using fixed assets to generate sales over the period.
Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset
This ratio also showed a rising pattern, beginning at 5.62 in 2020 and rising to 12.56 for 2025. Although the magnitude is lower compared to the net fixed asset turnover alone, the trend suggests improving utilization of both fixed assets and leased assets.
Total Asset Turnover
The total asset turnover ratio increased modestly from 0.38 in 2020 to a peak of 0.48 in 2023, followed by a decline to 0.39 by 2025. The initial rise indicates some improvement in generating revenue from the total asset base, but the subsequent decrease may suggest slower growth or increased asset accumulation without proportional revenue gains.
Equity Turnover
The equity turnover ratio demonstrated significant volatility, rising sharply from 3.09 in 2020 to 26.20 in 2022, then dropping considerably to 1.18 by 2025. This fluctuation could reflect dramatic changes in equity levels or revenue generation relative to equity, potentially indicating periods of equity financing changes, stock issuance, or earnings variability.

Net Fixed Asset Turnover

Palo Alto Networks Inc., net fixed asset turnover calculation, comparison to benchmarks

Microsoft Excel
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
Property and equipment, net
Long-term Activity Ratio
Net fixed asset turnover1
Benchmarks
Net Fixed Asset Turnover, 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.
Net Fixed Asset Turnover, Sector
Software & Services
Net Fixed Asset Turnover, Industry
Information Technology

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
Net fixed asset turnover = Revenue ÷ Property and equipment, net
= ÷ =

2 Click competitor name to see calculations.

Revenue Trend
Revenue shows a consistent upward trajectory over the observed periods. Beginning at approximately $3.41 billion in 2020, revenue increased steadily each year, reaching around $9.22 billion by 2025. This represents a significant growth rate, indicating strong business expansion and increasing market demand.
Property and Equipment, Net
The net value of property and equipment demonstrates moderate fluctuations over the years. Starting at approximately $348.1 million in 2020, the value decreased slightly in 2021 to about $318.4 million, then experienced incremental growth, rising to $387.3 million by 2025. This pattern suggests periodic investments in assets, aligning with operational needs and capacity expansion.
Net Fixed Asset Turnover Ratio
The net fixed asset turnover ratio exhibits a pronounced improvement over time, increasing from 9.79 in 2020 to 23.81 in 2025. This indicates enhanced efficiency in utilizing fixed assets to generate revenue. The continual increase suggests that the company is generating more sales per unit of fixed asset, reflecting effective asset management and operational scalability.

Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)

Palo Alto Networks Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks

Microsoft Excel
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
 
Property and equipment, net
Operating lease right-of-use assets
Property and equipment, net (including operating lease, right-of-use asset)
Long-term Activity Ratio
Net fixed asset turnover (including operating lease, right-of-use asset)1
Benchmarks
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), 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.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector
Software & Services
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry
Information Technology

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
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenue ÷ Property and equipment, net (including operating lease, right-of-use asset)
= ÷ =

2 Click competitor name to see calculations.

Revenue Trends
Revenue exhibits a consistent upward trajectory across the periods analyzed. Starting at 3,408,400 thousand US dollars in July 2020, revenue increases steadily each year, reaching 9,221,500 thousand US dollars by July 2025. This represents a significant growth rate, more than doubling over the five-year span, indicating strong sales and market expansion.
Property and Equipment, Net
The net value of property and equipment, including operating lease right-of-use assets, shows minor fluctuations. It starts at 606,800 thousand US dollars in July 2020, experiences a slight decline to 581,300 thousand US dollars in July 2021, and then moderately rises to 747,000 thousand US dollars in July 2024 before a small decrease to 734,300 thousand US dollars in July 2025. Overall, the asset base remains relatively stable with slight growth towards the later years.
Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
The net fixed asset turnover ratio demonstrates a marked improvement over time, increasing from 5.62 in July 2020 to 12.56 in July 2025. This doubling of the turnover ratio suggests enhanced efficiency in utilizing fixed assets to generate revenue. Despite the modest fluctuations in the asset base, the company's ability to leverage its fixed assets to produce revenue has substantially improved, particularly notable between July 2021 and July 2025.
Overall Insights
The data reflect a strong revenue growth trend combined with a fairly stable asset base and a pronounced improvement in asset turnover efficiency. This indicates effective management of fixed assets and likely operational improvements, supporting sustainable growth and efficient resource utilization. The ability to increase revenue at a faster pace than asset growth is a positive sign for the company’s operational leverage and profitability potential.

Total Asset Turnover

Palo Alto Networks Inc., total asset turnover calculation, comparison to benchmarks

Microsoft Excel
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
Total assets
Long-term Activity Ratio
Total asset turnover1
Benchmarks
Total Asset Turnover, 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.
Total Asset Turnover, Sector
Software & Services
Total Asset Turnover, Industry
Information Technology

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
Total asset turnover = Revenue ÷ Total assets
= ÷ =

2 Click competitor name to see calculations.

Revenue
Revenue demonstrates a consistent upward trajectory across the observed periods, rising from approximately 3.41 billion USD in 2020 to an estimated 9.22 billion USD in 2025. This steady growth reflects sustained expansion and increasing sales capacity over the five-year span, with notable acceleration in the later years, particularly from 2023 onward.
Total Assets
Total assets also show a continuous increase, expanding from around 9.07 billion USD in 2020 to an estimated 23.58 billion USD in 2025. This growth indicates substantial investment in assets, potentially to support the scaling of operations and revenue generation. The sharp rise especially after 2023 suggests significant capital deployment or asset acquisition during this period.
Total Asset Turnover
The total asset turnover ratio, which measures efficiency in using assets to generate revenue, improved from 0.38 in 2020 to a peak of 0.48 in 2023, implying increased effectiveness in asset utilization during the earlier part of the timeline. However, a decline follows in 2024 and 2025, with the ratio falling to 0.40 and then 0.39 respectively. This reduction in turnover despite rising revenue and asset base might indicate that asset growth outpaces revenue growth in the most recent years, suggesting potentially less efficient use of assets or a shift in the asset structure.
Overall Insights
The financial data indicates robust top-line growth accompanied by significant asset accumulation, highlighting a growth-oriented strategy. The initial increase and subsequent decline in asset turnover ratio point to a possible need for enhanced operational efficiency or better asset management to ensure that asset investments translate into proportional revenue gains. Monitoring these trends will be critical to sustaining profitability and operational performance in the future.

Equity Turnover

Palo Alto Networks Inc., equity turnover calculation, comparison to benchmarks

Microsoft Excel
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
Stockholders’ equity
Long-term Activity Ratio
Equity turnover1
Benchmarks
Equity Turnover, 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.
Equity Turnover, Sector
Software & Services
Equity Turnover, Industry
Information Technology

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
Equity turnover = Revenue ÷ Stockholders’ equity
= ÷ =

2 Click competitor name to see calculations.

Revenue
Revenue has shown a consistent and significant upward trend over the six-year period. Starting at 3,408,400 thousand US dollars in 2020, it increased steadily each year, reaching 9,221,500 thousand US dollars by 2025. This represents substantial growth, with the revenue nearly tripling over the timeframe, indicating strong sales expansion and market demand.
Stockholders’ Equity
Stockholders' equity exhibits considerable volatility throughout the analyzed periods. It began at 1,101,800 thousand US dollars in 2020, then sharply declined to a low of 210,000 thousand US dollars in 2022. Following this trough, equity recovered significantly, rising to 7,824,400 thousand US dollars by 2025. This fluctuation suggests possible capital restructuring events or losses impacting equity negatively initially, followed by substantial capital increases or retained earnings accumulation later.
Equity Turnover Ratio
The equity turnover ratio, which measures revenue generation relative to equity, shows considerable variability. It starts at 3.09 in 2020, peaks dramatically at 26.2 in 2022, then declines steadily to 1.18 in 2025. The peak in 2022 coincides with the lowest equity value, which explains the inflated ratio during that year. The subsequent decline in ratio after 2022 reflects the sharp increase in equity, outpacing the revenue growth rate, leading to a lower turnover ratio.
Overall Insights
The company demonstrates robust revenue growth, underpinned by a significant increase in capital base from 2023 onwards. The sharp dip and recovery in stockholders' equity imply structural changes in financing or earnings capabilities. The equity turnover ratio's dramatic fluctuations underscore the inverse relationship with equity changes and suggest that operational efficiency in using equity to generate revenue was highest when equity was lowest, but normalized as equity expanded.