Pure Storage Inc (PSTG)
Fixed asset turnover
| Feb 4, 2024 | Feb 5, 2023 | Feb 6, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,817,430 | 2,740,340 | 2,138,940 | 1,655,280 | 1,612,150 |
| Property, plant and equipment | US$ in thousands | 352,604 | 272,445 | 195,282 | 163,041 | 122,740 |
| Fixed asset turnover | 7.99 | 10.06 | 10.95 | 10.15 | 13.13 |
February 4, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,817,430K ÷ $352,604K
= 7.99
Fixed asset turnover is a key financial ratio that measures a company's efficiency in generating revenue from its investment in fixed assets. Pure Storage Inc's fixed asset turnover has shown a decreasing trend over the past five years, with values of 7.99 in Feb 4, 2024, 10.06 in Feb 5, 2023, 10.95 in Feb 6, 2022, 10.15 in Jan 31, 2021, and 13.13 in Feb 2, 2020.
A higher fixed asset turnover ratio generally indicates that the company is efficient in utilizing its fixed assets to generate sales. In Pure Storage Inc's case, the declining trend in the ratio could suggest that the company has become less efficient in generating revenue from its fixed assets over the years.
It is essential for Pure Storage Inc to further investigate the reasons behind the decreasing fixed asset turnover ratio and identify potential areas for improvement in asset utilization efficiency to enhance overall financial performance and profitability.
Peer comparison
Feb 4, 2024