Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Palo Alto Networks Inc., liquidity ratios
Based on: 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), 10-K (reporting date: 2019-07-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Palo Alto Networks Inc. current ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Palo Alto Networks Inc. quick ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Palo Alto Networks Inc. cash ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
Current Ratio
Palo Alto Networks Inc., current ratio calculation, comparison to benchmarks
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current assets | 6,849,700) | 6,048,000) | 6,414,900) | 4,647,300) | 5,129,200) | 3,664,800) | |
| Current liabilities | 7,682,700) | 7,737,500) | 8,306,300) | 5,116,700) | 2,691,700) | 2,053,300) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 0.89 | 0.78 | 0.77 | 0.91 | 1.91 | 1.78 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Accenture PLC | 1.10 | 1.30 | 1.23 | 1.25 | 1.40 | 1.40 | |
| Adobe Inc. | — | 1.34 | 1.11 | 1.25 | 1.48 | 0.79 | |
| Autodesk Inc. | 0.82 | 0.84 | 0.69 | 0.83 | 0.83 | 0.70 | |
| Cadence Design Systems Inc. | — | 1.24 | 1.27 | 1.77 | 1.86 | 1.74 | |
| CrowdStrike Holdings Inc. | 1.76 | 1.73 | 1.83 | 2.65 | 2.38 | — | |
| International Business Machines Corp. | — | 0.96 | 0.92 | 0.88 | 0.98 | 1.02 | |
| Intuit Inc. | 1.29 | 1.47 | 1.39 | 1.94 | 2.26 | 1.83 | |
| Microsoft Corp. | 1.27 | 1.77 | 1.78 | 2.08 | 2.52 | 2.53 | |
| Oracle Corp. | 0.72 | 0.91 | 1.62 | 2.30 | 3.03 | 2.49 | |
| Salesforce Inc. | 1.09 | 1.02 | 1.05 | 1.23 | 1.08 | 0.95 | |
| ServiceNow Inc. | — | 1.06 | 1.11 | 1.05 | 1.21 | 1.03 | |
| Synopsys Inc. | — | 1.15 | 1.09 | 1.16 | 1.19 | 0.99 | |
| Current Ratio, Sector | |||||||
| Software & Services | — | 1.36 | 1.41 | 1.66 | 1.90 | 1.83 | |
| Current Ratio, Industry | |||||||
| Information Technology | — | 1.46 | 1.43 | 1.64 | 1.85 | 1.77 | |
Based on: 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), 10-K (reporting date: 2019-07-31).
1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= 6,849,700 ÷ 7,682,700 = 0.89
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Palo Alto Networks Inc. current ratio improved from 2022 to 2023 and from 2023 to 2024. |
Quick Ratio
Palo Alto Networks Inc., quick ratio calculation, comparison to benchmarks
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | 1,535,200) | 1,135,300) | 2,118,500) | 1,874,200) | 2,958,000) | 961,400) | |
| Short-term investments | 1,043,600) | 1,254,700) | 1,516,000) | 1,026,900) | 789,800) | 1,841,700) | |
| Accounts receivable, net of allowance for credit losses | 2,618,600) | 2,463,200) | 2,142,500) | 1,240,400) | 1,037,100) | 582,400) | |
| Short-term financing receivables, net | 725,900) | 388,800) | 111,300) | 79,000) | —) | —) | |
| Short-term deferred contract costs | 369,000) | 339,200) | 317,700) | 276,500) | 206,000) | 151,100) | |
| Total quick assets | 6,292,300) | 5,581,200) | 6,206,000) | 4,497,000) | 4,990,900) | 3,536,600) | |
| Current liabilities | 7,682,700) | 7,737,500) | 8,306,300) | 5,116,700) | 2,691,700) | 2,053,300) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 0.82 | 0.72 | 0.75 | 0.88 | 1.85 | 1.72 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Accenture PLC | 0.98 | 1.18 | 1.12 | 1.14 | 1.29 | 1.29 | |
| Adobe Inc. | — | 1.22 | 1.00 | 1.11 | 1.34 | 0.70 | |
| Autodesk Inc. | 0.72 | 0.76 | 0.62 | 0.77 | 0.78 | 0.62 | |
| Cadence Design Systems Inc. | — | 1.02 | 1.02 | 1.47 | 1.60 | 1.51 | |
| CrowdStrike Holdings Inc. | 1.60 | 1.58 | 1.68 | 2.50 | 2.18 | — | |
| International Business Machines Corp. | — | 0.80 | 0.73 | 0.67 | 0.83 | 0.87 | |
| Intuit Inc. | 0.71 | 1.25 | 1.17 | 1.65 | 2.04 | 1.44 | |
| Microsoft Corp. | 1.06 | 1.54 | 1.57 | 1.90 | 2.33 | 2.35 | |
| Oracle Corp. | 0.59 | 0.74 | 1.43 | 2.15 | 2.83 | 2.31 | |
| Salesforce Inc. | 0.96 | 0.90 | 0.93 | 1.11 | 0.95 | 0.82 | |
| ServiceNow Inc. | — | 1.00 | 1.06 | 1.01 | 1.16 | 0.98 | |
| Synopsys Inc. | — | 0.85 | 0.85 | 0.89 | 0.94 | 0.73 | |
| Quick Ratio, Sector | |||||||
| Software & Services | — | 1.18 | 1.24 | 1.50 | 1.74 | 1.68 | |
| Quick Ratio, Industry | |||||||
| Information Technology | — | 1.17 | 1.15 | 1.38 | 1.59 | 1.54 | |
Based on: 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), 10-K (reporting date: 2019-07-31).
1 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 6,292,300 ÷ 7,682,700 = 0.82
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Palo Alto Networks Inc. quick ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Cash Ratio
Palo Alto Networks Inc., cash ratio calculation, comparison to benchmarks
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | 1,535,200) | 1,135,300) | 2,118,500) | 1,874,200) | 2,958,000) | 961,400) | |
| Short-term investments | 1,043,600) | 1,254,700) | 1,516,000) | 1,026,900) | 789,800) | 1,841,700) | |
| Total cash assets | 2,578,800) | 2,390,000) | 3,634,500) | 2,901,100) | 3,747,800) | 2,803,100) | |
| Current liabilities | 7,682,700) | 7,737,500) | 8,306,300) | 5,116,700) | 2,691,700) | 2,053,300) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.34 | 0.31 | 0.44 | 0.57 | 1.39 | 1.37 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Accenture PLC | 0.26 | 0.50 | 0.45 | 0.52 | 0.67 | 0.55 | |
| Adobe Inc. | — | 0.95 | 0.75 | 0.84 | 1.09 | 0.51 | |
| Autodesk Inc. | 0.52 | 0.52 | 0.44 | 0.57 | 0.57 | 0.41 | |
| Cadence Design Systems Inc. | — | 0.72 | 0.66 | 1.13 | 1.17 | 1.06 | |
| CrowdStrike Holdings Inc. | 1.29 | 1.28 | 1.42 | 2.22 | 1.85 | — | |
| International Business Machines Corp. | — | 0.39 | 0.28 | 0.22 | 0.36 | 0.24 | |
| Intuit Inc. | 0.54 | 0.97 | 0.90 | 1.46 | 2.00 | 1.39 | |
| Microsoft Corp. | 0.60 | 1.07 | 1.10 | 1.47 | 1.89 | 1.93 | |
| Oracle Corp. | 0.34 | 0.44 | 1.12 | 1.93 | 2.50 | 2.03 | |
| Salesforce Inc. | 0.53 | 0.48 | 0.48 | 0.67 | 0.54 | 0.39 | |
| ServiceNow Inc. | — | 0.66 | 0.71 | 0.67 | 0.83 | 0.61 | |
| Synopsys Inc. | — | 0.53 | 0.56 | 0.65 | 0.58 | 0.42 | |
| Cash Ratio, Sector | |||||||
| Software & Services | — | 0.75 | 0.80 | 1.10 | 1.31 | 1.22 | |
| Cash Ratio, Industry | |||||||
| Information Technology | — | 0.75 | 0.72 | 0.96 | 1.18 | 1.10 | |
Based on: 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), 10-K (reporting date: 2019-07-31).
1 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 2,578,800 ÷ 7,682,700 = 0.34
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Palo Alto Networks Inc. cash ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |