Pure Storage Inc (PSTG)

Short-term

Turnover ratios

Based on the provided data, we can analyze the activity ratios of Pure Storage Inc as follows:

1. Inventory Turnover:
- The inventory turnover ratio shows how efficiently a company manages its inventory. The trend for Pure Storage Inc's inventory turnover indicates an improvement from 16.43 in January 2023 to 22.32 in January 2025, with some fluctuations in between. A higher inventory turnover ratio generally suggests that the company is selling its products more quickly.

2. Receivables Turnover:
- The receivables turnover ratio reflects how efficiently a company collects payments from its customers. Pure Storage Inc did not have a receivables turnover reported for January 2023 and January 2024, but it was 4.47 in February 2023 and increased to 4.25 in February 2024. A higher receivables turnover ratio signifies that the company collects payments more promptly.

3. Payables Turnover:
- The payables turnover ratio demonstrates how quickly a company pays its suppliers. Pure Storage Inc did not report a payables turnover for January 2023 and January 2024, but it was 30.96 in February 2023 and decreased to 25.95 in February 2024. A lower payables turnover ratio can indicate that the company is taking longer to pay its suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales. Pure Storage Inc had relatively consistent working capital turnover ratios ranging from 2.49 to 3.78 over the reported periods. A higher working capital turnover ratio suggests that the company is effectively utilizing its working capital to generate sales.

In summary, Pure Storage Inc has shown improvements in inventory turnover and receivables turnover ratios, while the payables turnover ratio slightly decreased. The working capital turnover remained relatively stable over the analyzed periods, indicating consistent efficiency in utilizing working capital to drive sales.

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Average number of days

Based on the provided data for Pure Storage Inc's activity ratios:

1. Days of Inventory on Hand (DOH):
- In January 2023, the company held inventory for approximately 22.22 days, which decreased to 8.81 days by February 5, 2023.
- The DOH increased to 19.24 days by January 31, 2024, and then further decreased to 7.25 days by February 4, 2024.
- As of January 31, 2025, Pure Storage Inc maintained inventory for around 16.35 days, indicating fluctuations in managing its inventory levels over the years.

2. Days of Sales Outstanding (DSO):
- There is missing data for DSO on January 31, 2023, and January 31, 2024. However, on February 5, 2023, the DSO stood at 81.58 days, which increased to 85.79 days by February 4, 2024.
- The company's DSO provides insight into the average number of days it takes to collect revenue from customers, with higher values suggesting a longer collection period.

3. Number of Days of Payables:
- Similarly, there is missing data for the number of days of payables on January 31, 2023, and January 31, 2024. However, by February 5, 2023, the company had payables outstanding for 11.79 days, which increased to 14.06 days by February 4, 2024.
- The days of payables metric reflects the average number of days the company takes to pay its suppliers, with longer payment periods potentially indicating stronger bargaining power with suppliers.

Overall, analyzing Pure Storage Inc's activity ratios reveals fluctuations in inventory management, collection periods, and payment terms over the period under review, highlighting areas that may require closer attention for potential efficiency improvements.

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Long-term

Pure Storage Inc's Fixed Asset Turnover ratio indicates the company's ability to generate revenue from its investment in fixed assets. The trend over the years shows variability, with a significant increase from 6.38 in January 31, 2023, to 10.06 in February 5, 2023, followed by a decrease to 7.99 in February 4, 2024. The ratio for January 31, 2024, and January 31, 2025, is not available.

The Total Asset Turnover ratio measures Pure Storage Inc's efficiency in utilizing all assets to generate sales. The ratio has remained relatively stable over the years, ranging from 0.77 to 0.80. This suggests that the company is consistently able to generate revenue in relation to its total assets.

Overall, the Fixed Asset Turnover ratio's fluctuations may indicate changes in the company's asset utilization efficiency, while the stable Total Asset Turnover ratio reflects a consistent ability to generate revenue relative to its total asset base. It would be beneficial to further investigate the reasons behind the fluctuations in the Fixed Asset Turnover ratio to assess Pure Storage Inc's long-term operational efficiency.