Stock Analysis on Net
Stock Analysis on Net

Palo Alto Networks Inc. (NASDAQ:PANW)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Palo Alto Networks Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Oct 31, 2024 46.25% = 13.42% × 3.45
Jul 31, 2024 49.86% = 12.89% × 3.87
Apr 30, 2024 54.78% = 13.65% × 4.01
Jan 31, 2024 52.25% = 12.45% × 4.20
Oct 31, 2023 28.28% = 4.15% × 6.82
Jul 31, 2023 25.15% = 3.03% × 8.29
Apr 30, 2023 17.47% = 1.52% × 11.50
Jan 31, 2023 4.71% = 0.26% × 18.06
Oct 31, 2022 -28.23% = -1.14% × 24.69
Jul 31, 2022 -127.14% = -2.18% × 58.35
Apr 30, 2022 -115.40% = -3.51% × 32.88
Jan 31, 2022 -391.77% = -4.44% × 88.29
Oct 31, 2021 -98.34% = -4.89% × 20.09
Jul 31, 2021 -78.63% = -4.87% × 16.14
Apr 30, 2021 -43.97% = -4.59% × 9.59
Jan 31, 2021 -35.50% = -3.88% × 9.15
Oct 31, 2020 -40.11% = -3.43% × 11.68
Jul 31, 2020 -24.23% = -2.95% × 8.23
Apr 30, 2020 -30.74% = -3.52% × 8.73
Jan 31, 2020 -10.84% = -2.43% × 4.47
Oct 31, 2019 -6.81% = -1.51% × 4.50
Jul 31, 2019 -5.16% = -1.24% × 4.16
Apr 30, 2019 — = — × 4.31
Jan 31, 2019 — = — × 5.33
Oct 31, 2018 — = — × 4.63

Based on: 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), 10-K (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31), 10-Q (reporting date: 2018-10-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2025 is the decrease in financial leverage ratio.

Three-Component Disaggregation of ROE

Palo Alto Networks Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Oct 31, 2024 46.25% = 32.99% × 0.41 × 3.45
Jul 31, 2024 49.86% = 32.11% × 0.40 × 3.87
Apr 30, 2024 54.78% = 31.41% × 0.43 × 4.01
Jan 31, 2024 52.25% = 30.24% × 0.41 × 4.20
Oct 31, 2023 28.28% = 8.52% × 0.49 × 6.82
Jul 31, 2023 25.15% = 6.38% × 0.48 × 8.29
Apr 30, 2023 17.47% = 3.32% × 0.46 × 11.50
Jan 31, 2023 4.71% = 0.56% × 0.47 × 18.06
Oct 31, 2022 -28.23% = -2.46% × 0.46 × 24.69
Jul 31, 2022 -127.14% = -4.85% × 0.45 × 58.35
Apr 30, 2022 -115.40% = -7.54% × 0.47 × 32.88
Jan 31, 2022 -391.77% = -9.50% × 0.47 × 88.29
Oct 31, 2021 -98.34% = -11.20% × 0.44 × 20.09
Jul 31, 2021 -78.63% = -11.72% × 0.42 × 16.14
Apr 30, 2021 -43.97% = -11.00% × 0.42 × 9.59
Jan 31, 2021 -35.50% = -9.73% × 0.40 × 9.15
Oct 31, 2020 -40.11% = -8.36% × 0.41 × 11.68
Jul 31, 2020 -24.23% = -7.83% × 0.38 × 8.23
Apr 30, 2020 -30.74% = -7.01% × 0.50 × 8.73
Jan 31, 2020 -10.84% = -5.58% × 0.43 × 4.47
Oct 31, 2019 -6.81% = -3.42% × 0.44 × 4.50
Jul 31, 2019 -5.16% = -2.82% × 0.44 × 4.16
Apr 30, 2019 — = — × — × 4.31
Jan 31, 2019 — = — × — × 5.33
Oct 31, 2018 — = — × — × 4.63

Based on: 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), 10-K (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31), 10-Q (reporting date: 2018-10-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2025 is the decrease in financial leverage ratio.

Five-Component Disaggregation of ROE

Palo Alto Networks Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Oct 31, 2024 46.25% = 2.55 × 0.99 × 13.04% × 0.41 × 3.45
Jul 31, 2024 49.86% = 2.61 × 0.99 × 12.41% × 0.40 × 3.87
Apr 30, 2024 54.78% = 2.48 × 0.99 × 12.83% × 0.43 × 4.01
Jan 31, 2024 52.25% = 2.63 × 0.98 × 11.75% × 0.41 × 4.20
Oct 31, 2023 28.28% = 0.75 × 0.97 × 11.62% × 0.49 × 6.82
Jul 31, 2023 25.15% = 0.78 × 0.95 × 8.61% × 0.48 × 8.29
Apr 30, 2023 17.47% = 0.81 × 0.90 × 4.55% × 0.46 × 11.50
Jan 31, 2023 4.71% = 0.41 × 0.75 × 1.80% × 0.47 × 18.06
Oct 31, 2022 -28.23% = — × — × -0.93% × 0.46 × 24.69
Jul 31, 2022 -127.14% = — × — × -3.27% × 0.45 × 58.35
Apr 30, 2022 -115.40% = — × — × -5.12% × 0.47 × 32.88
Jan 31, 2022 -391.77% = — × — × -6.76% × 0.47 × 88.29
Oct 31, 2021 -98.34% = — × — × -7.55% × 0.44 × 20.09
Jul 31, 2021 -78.63% = — × — × -7.09% × 0.42 × 16.14
Apr 30, 2021 -43.97% = — × — × -6.47% × 0.42 × 9.59
Jan 31, 2021 -35.50% = — × — × -5.20% × 0.40 × 9.15
Oct 31, 2020 -40.11% = — × — × -4.18% × 0.41 × 11.68
Jul 31, 2020 -24.23% = — × — × -4.20% × 0.38 × 8.23
Apr 30, 2020 -30.74% = — × — × -3.67% × 0.50 × 8.73
Jan 31, 2020 -10.84% = — × — × -2.30% × 0.43 × 4.47
Oct 31, 2019 -6.81% = — × — × -0.24% × 0.44 × 4.50
Jul 31, 2019 -5.16% = — × -8.02 × 0.32% × 0.44 × 4.16
Apr 30, 2019 — = — × — × — × — × 4.31
Jan 31, 2019 — = — × — × — × — × 5.33
Oct 31, 2018 — = — × — × — × — × 4.63

Based on: 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), 10-K (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31), 10-Q (reporting date: 2018-10-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2025 is the decrease in financial leverage ratio.

Two-Component Disaggregation of ROA

Palo Alto Networks Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Oct 31, 2024 13.42% = 32.99% × 0.41
Jul 31, 2024 12.89% = 32.11% × 0.40
Apr 30, 2024 13.65% = 31.41% × 0.43
Jan 31, 2024 12.45% = 30.24% × 0.41
Oct 31, 2023 4.15% = 8.52% × 0.49
Jul 31, 2023 3.03% = 6.38% × 0.48
Apr 30, 2023 1.52% = 3.32% × 0.46
Jan 31, 2023 0.26% = 0.56% × 0.47
Oct 31, 2022 -1.14% = -2.46% × 0.46
Jul 31, 2022 -2.18% = -4.85% × 0.45
Apr 30, 2022 -3.51% = -7.54% × 0.47
Jan 31, 2022 -4.44% = -9.50% × 0.47
Oct 31, 2021 -4.89% = -11.20% × 0.44
Jul 31, 2021 -4.87% = -11.72% × 0.42
Apr 30, 2021 -4.59% = -11.00% × 0.42
Jan 31, 2021 -3.88% = -9.73% × 0.40
Oct 31, 2020 -3.43% = -8.36% × 0.41
Jul 31, 2020 -2.95% = -7.83% × 0.38
Apr 30, 2020 -3.52% = -7.01% × 0.50
Jan 31, 2020 -2.43% = -5.58% × 0.43
Oct 31, 2019 -1.51% = -3.42% × 0.44
Jul 31, 2019 -1.24% = -2.82% × 0.44
Apr 30, 2019 — = — × —
Jan 31, 2019 — = — × —
Oct 31, 2018 — = — × —

Based on: 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), 10-K (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31), 10-Q (reporting date: 2018-10-31).

The primary reason for the increase in return on assets ratio (ROA) over Q1 2025 is the increase in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Palo Alto Networks Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Oct 31, 2024 13.42% = 2.55 × 0.99 × 13.04% × 0.41
Jul 31, 2024 12.89% = 2.61 × 0.99 × 12.41% × 0.40
Apr 30, 2024 13.65% = 2.48 × 0.99 × 12.83% × 0.43
Jan 31, 2024 12.45% = 2.63 × 0.98 × 11.75% × 0.41
Oct 31, 2023 4.15% = 0.75 × 0.97 × 11.62% × 0.49
Jul 31, 2023 3.03% = 0.78 × 0.95 × 8.61% × 0.48
Apr 30, 2023 1.52% = 0.81 × 0.90 × 4.55% × 0.46
Jan 31, 2023 0.26% = 0.41 × 0.75 × 1.80% × 0.47
Oct 31, 2022 -1.14% = — × — × -0.93% × 0.46
Jul 31, 2022 -2.18% = — × — × -3.27% × 0.45
Apr 30, 2022 -3.51% = — × — × -5.12% × 0.47
Jan 31, 2022 -4.44% = — × — × -6.76% × 0.47
Oct 31, 2021 -4.89% = — × — × -7.55% × 0.44
Jul 31, 2021 -4.87% = — × — × -7.09% × 0.42
Apr 30, 2021 -4.59% = — × — × -6.47% × 0.42
Jan 31, 2021 -3.88% = — × — × -5.20% × 0.40
Oct 31, 2020 -3.43% = — × — × -4.18% × 0.41
Jul 31, 2020 -2.95% = — × — × -4.20% × 0.38
Apr 30, 2020 -3.52% = — × — × -3.67% × 0.50
Jan 31, 2020 -2.43% = — × — × -2.30% × 0.43
Oct 31, 2019 -1.51% = — × — × -0.24% × 0.44
Jul 31, 2019 -1.24% = — × -8.02 × 0.32% × 0.44
Apr 30, 2019 — = — × — × — × —
Jan 31, 2019 — = — × — × — × —
Oct 31, 2018 — = — × — × — × —

Based on: 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), 10-K (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31), 10-Q (reporting date: 2018-10-31).

The primary reason for the increase in return on assets ratio (ROA) over Q1 2025 is the increase in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

Palo Alto Networks Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Oct 31, 2024 32.99% = 2.55 × 0.99 × 13.04%
Jul 31, 2024 32.11% = 2.61 × 0.99 × 12.41%
Apr 30, 2024 31.41% = 2.48 × 0.99 × 12.83%
Jan 31, 2024 30.24% = 2.63 × 0.98 × 11.75%
Oct 31, 2023 8.52% = 0.75 × 0.97 × 11.62%
Jul 31, 2023 6.38% = 0.78 × 0.95 × 8.61%
Apr 30, 2023 3.32% = 0.81 × 0.90 × 4.55%
Jan 31, 2023 0.56% = 0.41 × 0.75 × 1.80%
Oct 31, 2022 -2.46% = — × — × -0.93%
Jul 31, 2022 -4.85% = — × — × -3.27%
Apr 30, 2022 -7.54% = — × — × -5.12%
Jan 31, 2022 -9.50% = — × — × -6.76%
Oct 31, 2021 -11.20% = — × — × -7.55%
Jul 31, 2021 -11.72% = — × — × -7.09%
Apr 30, 2021 -11.00% = — × — × -6.47%
Jan 31, 2021 -9.73% = — × — × -5.20%
Oct 31, 2020 -8.36% = — × — × -4.18%
Jul 31, 2020 -7.83% = — × — × -4.20%
Apr 30, 2020 -7.01% = — × — × -3.67%
Jan 31, 2020 -5.58% = — × — × -2.30%
Oct 31, 2019 -3.42% = — × — × -0.24%
Jul 31, 2019 -2.82% = — × -8.02 × 0.32%
Apr 30, 2019 — = — × — × —
Jan 31, 2019 — = — × — × —
Oct 31, 2018 — = — × — × —

Based on: 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), 10-K (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31), 10-Q (reporting date: 2018-10-31).

The primary reason for the increase in net profit margin ratio over Q1 2025 is the increase in operating profitability measured by EBIT margin ratio.