Palo Alto Story

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PANW -- USA Stock  

USD 242.14  3.80  1.55%

Palo Alto Networks is scheduled to announce its earnings today. The next earnings report is expected on the 23rd of November 2020. Palo Alto PPandE Turnover is fairly stable at the moment as compared to the past year. Palo Alto reported PPandE Turnover of 11.72 in 2019. Receivables Turnover is likely to climb to 6.48 in 2020, whereas Revenue Per Employee is likely to drop slightly above 342.7 K in 2020. While some of us are becoming more enthusiastic about technology space, let's focus on Palo Alto Networks in greater detail to make a better estimate of its debt utilization. We will recap if it could be a much better year for Palo Alto shareholders.
Published over a month ago
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Should I trade my Palo Alto (NYSE:PANW) position?
This firm currently holds 1.88 B in liabilities with Debt to Equity (D/E) ratio of 2.52, implying Palo Alto greatly relies on financing operations through barrowing. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Palo Alto has an asset utilization ratio of 114.06 percent. This indicates that the company is making $1.14 for each dollar of assets. An increasing asset utilization means that Palo Alto Networks is more efficient with each dollar of assets it utilizes for everyday operations.
Palo Alto financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Palo Alto, including all of Palo Alto's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Palo Alto assets, the company is considered highly leveraged. Understanding the composition and structure of overall Palo Alto debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Palo Alto Total Liabilities

Palo Alto Networks liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Palo Alto Networks has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Palo Alto balance sheet include debt obligations and money owed to different Palo Alto vendors, workers, and loan providers. Below is the chart of Palo Alto short long-term liabilities accounts currently reported on its balance sheet.
You can use Palo Alto Networks financial leverage analysis tool to get a better grip on understanding its financial position

How important is Palo Alto's Liquidity

Palo Alto financial leverage refers to using borrowed capital as a funding source to finance Palo Alto Networks ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Palo Alto financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Palo Alto's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Palo Alto, but it might be worth checking our own buy vs. sell analysis

Breaking down Palo Alto Indicators

The company reported the previous year's revenue of 3.26 B. Net Loss for the year was (228.9 M) with profit before overhead, payroll, taxes, and interest of 2.09 B.

Asset Breakdown

3.6 B
Assets Non Current
B
Goodwill
3.6 B
Current Assets
Total Assets6.4 Billion
Current Assets3.56 Billion
Assets Non Current3.63 Billion
Goodwill2.03 Billion

Our Palo Alto analysis indicates possible reversion in September

Palo Alto latest standard deviation rises over 1.87. Palo Alto Networks has relatively low volatility with skewness of -0.02 and kurtosis of 0.07. However, we advise all investors to independently investigate Palo Alto Networks to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Conclusion on Palo Alto

While some firms in the software?infrastructure industry are either recovering or due for a correction, Palo Alto may not be as strong as the others in terms of longer-term growth potentials. While some in few days oriented sophisticated investors may not share our view, we believe it may not be a good time to buy new shares of Palo Alto.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Palo Alto Networks. Please refer to our Terms of Use for any information regarding our disclosure principles.

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