The Receivables Turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by average Accounts Receivable. An efficient company has a higher accounts receivable turnover ratio while an inefficient company has a lower ratio. Palo Alto Networks's Revenue for the
three
months ended in Apr. 2026 was €2,567 Mil. Palo Alto Networks's average Accounts Receivable for the
three
months ended in Apr. 2026 was €2,120 Mil.
Hence, Palo Alto Networks's Receivables Turnover for the
three
months ended in Apr. 2026 was 1.21.
An efficient company has a higher accounts receivable turnover ratio while an inefficient company has a lower ratio. This metric is commonly used to compare companies within the same industry to check whether they are on par with their competitors.
Palo Alto Networks Receivables Turnover Related Terms
Palo Alto Networks Receivables Turnover Historical Data
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The historical data trend for Palo Alto Networks's Receivables Turnover can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:5AP vs PLTR, CRWD, FTNT: Receivables Turnover Comparison
For the Software - Infrastructure subindustry, Palo Alto Networks's Receivables Turnover, along with its competitors' market caps and Receivables Turnover data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Palo Alto Networks Receivables Turnover vs Software Industry
For the Software industry and Technology sector, Palo Alto Networks's Receivables Turnover distribution charts can be found below:
* The bar in red indicates where Palo Alto Networks's Receivables Turnover falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Palo Alto Networks (FRA:5AP) has a Receivables Turnover of 1.21 as of Apr. 2026. The accounts receivables turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by Average Accounts Receivable. View historical data on Palo Alto Networks and its competitors. According to the industry distribution chart, Palo Alto Networks ranks #1745 out of 2773 companies in the Software industry, placing it in the top 62.9%.
Is Palo Alto Networks' Receivables Turnover too high?
Palo Alto Networks' current Receivables Turnover is 1.21. The Software industry median Receivables Turnover is 5.72. Palo Alto Networks' value of 1.21 is 78.8% below this industry median. Based on the distribution chart, Palo Alto Networks ranks #1745 out of 2773 companies in the Software industry, which is below the industry midpoint. Overall, Palo Alto Networks has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Palo Alto Networks' Receivables Turnover compare to PLTR and CRWD?
According to the Software industry distribution chart, Palo Alto Networks ranks #1745 out of 2773 companies for Receivables Turnover. This places Palo Alto Networks in the lower half of its industry. The industry median Receivables Turnover is 5.72. Palo Alto Networks' value of 1.21 is 78.8% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Receivables Turnover for a Software company?
The median Receivables Turnover among Software companies is 5.72, based on 2,773 companies in the industry. Companies in the top quartile (top 25%) have a Receivables Turnover significantly above this median, while those in the bottom quartile fall well below. However, Receivables Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Palo Alto Networks's current Receivables Turnover of 1.21 is 78.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Receivables Turnover mean?
A high Receivables Turnover can signal that a stock is expensive relative to its fundamentals. The accounts receivables turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by Average Accounts Receivable. View historical data on Palo Alto Networks and its competitors. For the Software industry, the median Receivables Turnover is 5.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Palo Alto Networks's current Receivables Turnover is 1.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Palo Alto Networks stock overvalued right now?
Based on GuruFocus' analysis, Palo Alto Networks (FRA:5AP) is currently considered Significantly Overvalued. The stock's GF Value™ is €184.93, compared to a current price of €285.00 — trading 54.1% above its estimated fair value. The current Receivables Turnover is 1.21 and 78.8% below the Software industry median of 5.72. Palo Alto Networks' overall GF Score™ is 76/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Receivables Turnover calculated?
Receivables Turnover is calculated from a company's financial statements. For Palo Alto Networks (FRA:5AP), the current Receivables Turnover is 1.21 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Palo Alto Networks (FRA:5AP) Overvalued in 2026?
Based on GuruFocus' analysis, Palo Alto Networks stock appears to be overvalued.
The current stock price of €285.00 is trading 54.1% above its estimated GF Value™ of €184.93.
GuruFocus considers Palo Alto Networks to be Significantly Overvalued.
Key valuation signals for FRA:5AP:
Receivables Turnover: 1.21
GF Value™: €184.93 vs. price of €285.00 (54.1% above fair value)
Industry Position: 78.8% below the Software median (#1745 of 2773)
No single metric tells the full story. See the FRA:5AP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Palo Alto Networks is a platform-based cybersecurity vendor with product offerings covering network security, cloud security, and security operations. The California-based firm has more than 80,000 enterprise customers across the world, including more than three-fourths of the Global 2000.
76GF Score
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Receivables Turnover is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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