Aureus
AExcellent

Palo Alto Networks, Inc.(PANW)

A

Financial data as of Jul 31, 2025Improving · Technology

FCF Margin37.6%Free Cash Flow / Revenue
Cash Conversion—Operating CF / Net Income
Free Cash Flow$3.5B
Revenue$9.2B
Net Cash$1.9BCash exceeds debt
Debt / FCF0.1xManageable debt load
Current Ratio0.94Tight short-term liquidity
YoY FCF Growth+15.1%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (37.6%, 0.1x)
→
-1Current ratio below 1.0 (0.94)
→
+1Strong YoY FCF growth (15.1% YoY)
→
+1Net cash position with strong FCF margin
→
+1Very low debt-to-FCF ratio (0.1x)
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (37.6%)
  • Net cash position ($1.9B)
  • Very low debt relative to cash flow (0.1x)
  • FCF trend is improving

Concerns

  • Current ratio below 1.0 — tight short-term liquidity
Cash conversion ratio unavailable or not meaningful

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin37.6%
Net Margin12.3%
Operating CF Margin40.3%
CapEx Ratio2.7%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash$1.9BCash exceeds debt
Debt / FCF0.1xManageable debt load
Current Ratio0.94Tight liquidity
Debt / Equity0.04Low leverage

Quarterly FCF Trend

+15.1% YoYImproving (+15.1%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NamePalo Alto Networks, Inc.
SectorTechnology
Free Cash Flow$3.5B
Revenue$9.2B
Net Income$1.1B
Operating Cash Flow$3.7B
Capital Expenditure$246.2M
FCF Margin37.6%
Cash Conversion Rate—
Net Margin12.3%
Total Debt$338.2M
Total Cash$2.3B
Net Cash$1.9B
Current Ratio0.94
Debt / Equity0.04
Debt / FCF0.1x
YoY FCF Growth+15.1%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateJul 31, 2025
GradeA
Data SourceYahoo Finance