Palo Alto Networks Inc., adjustment to net income (loss)

US$ in thousands

12 months ended:	Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020	Jul 31, 2019
Net income (loss) (as reported)	2,577,600)	439,700)	(267,000)	(498,900)	(267,000)	(81,900)
Add: Change in unrealized gains (losses) on investments	48,200)	(13,000)	(25,000)	(3,000)	1,000)	10,400)
Net income (loss) (adjusted)	2,625,800)	426,700)	(292,000)	(501,900)	(266,000)	(71,500)

Download chart

Palo Alto Networks Inc., adjusted profitability ratios

	Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020	Jul 31, 2019
Net Profit Margin
Reported net profit margin	32.11%	6.38%	-4.85%	-11.72%	-7.83%	-2.82%
Adjusted net profit margin	32.71%	6.19%	-5.31%	-11.79%	-7.80%	-2.47%
Return on Equity (ROE)
Reported ROE	49.86%	25.15%	-127.14%	-78.63%	-24.23%	-5.16%
Adjusted ROE	50.79%	24.41%	-139.05%	-79.10%	-24.14%	-4.51%
Return on Assets (ROA)
Reported ROA	12.89%	3.03%	-2.18%	-4.87%	-2.95%	-1.24%
Adjusted ROA	13.13%	2.94%	-2.38%	-4.90%	-2.93%	-1.08%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Palo Alto Networks Inc. adjusted net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Palo Alto Networks Inc. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Palo Alto Networks Inc. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

Download chart

	Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020	Jul 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss)	2,577,600)	439,700)	(267,000)	(498,900)	(267,000)	(81,900)
Revenue	8,027,500)	6,892,700)	5,501,500)	4,256,100)	3,408,400)	2,899,600)
Profitability Ratio
Net profit margin¹	32.11%	6.38%	-4.85%	-11.72%	-7.83%	-2.82%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income (loss)	2,625,800)	426,700)	(292,000)	(501,900)	(266,000)	(71,500)
Revenue	8,027,500)	6,892,700)	5,501,500)	4,256,100)	3,408,400)	2,899,600)
Profitability Ratio
Adjusted net profit margin²	32.71%	6.19%	-5.31%	-11.79%	-7.80%	-2.47%

2024 Calculations

¹ Net profit margin = 100 × Net income (loss) ÷ Revenue
= 100 × 2,577,600 ÷ 8,027,500 = 32.11%

² Adjusted net profit margin = 100 × Adjusted net income (loss) ÷ Revenue
= 100 × 2,625,800 ÷ 8,027,500 = 32.71%

Download chart

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Palo Alto Networks Inc. adjusted net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.

	Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020	Jul 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss)	2,577,600)	439,700)	(267,000)	(498,900)	(267,000)	(81,900)
Stockholders’ equity	5,169,700)	1,748,400)	210,000)	634,500)	1,101,800)	1,586,300)
Profitability Ratio
ROE¹	49.86%	25.15%	-127.14%	-78.63%	-24.23%	-5.16%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income (loss)	2,625,800)	426,700)	(292,000)	(501,900)	(266,000)	(71,500)
Stockholders’ equity	5,169,700)	1,748,400)	210,000)	634,500)	1,101,800)	1,586,300)
Profitability Ratio
Adjusted ROE²	50.79%	24.41%	-139.05%	-79.10%	-24.14%	-4.51%

2024 Calculations

¹ ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × 2,577,600 ÷ 5,169,700 = 49.86%

² Adjusted ROE = 100 × Adjusted net income (loss) ÷ Stockholders’ equity
= 100 × 2,625,800 ÷ 5,169,700 = 50.79%

Download chart

Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Palo Alto Networks Inc. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.

	Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020	Jul 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss)	2,577,600)	439,700)	(267,000)	(498,900)	(267,000)	(81,900)
Total assets	19,990,900)	14,501,100)	12,253,600)	10,241,600)	9,065,400)	6,592,200)
Profitability Ratio
ROA¹	12.89%	3.03%	-2.18%	-4.87%	-2.95%	-1.24%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income (loss)	2,625,800)	426,700)	(292,000)	(501,900)	(266,000)	(71,500)
Total assets	19,990,900)	14,501,100)	12,253,600)	10,241,600)	9,065,400)	6,592,200)
Profitability Ratio
Adjusted ROA²	13.13%	2.94%	-2.38%	-4.90%	-2.93%	-1.08%

2024 Calculations

¹ ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 2,577,600 ÷ 19,990,900 = 12.89%

² Adjusted ROA = 100 × Adjusted net income (loss) ÷ Total assets
= 100 × 2,625,800 ÷ 19,990,900 = 13.13%

Download chart

Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Palo Alto Networks Inc. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

Palo Alto Networks Inc. (NASDAQ:PANW)

Analysis of Investments