Pure Storage Inc (PSTG)
Fixed asset turnover
| Feb 4, 2024 | Nov 5, 2023 | Aug 6, 2023 | Feb 5, 2023 | Nov 6, 2022 | Aug 7, 2022 | May 8, 2022 | Feb 6, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,045,861 | 2,925,792 | 2,812,791 | 2,740,340 | 2,620,290 | 2,503,928 | 2,347,376 | 2,138,936 | 1,939,256 | 1,789,279 | 1,701,785 | 1,655,283 | 1,642,376 | 1,661,874 | 1,651,679 | 1,612,149 | 1,523,755 | 1,475,105 | 1,395,086 | 1,332,979 |
| Property, plant and equipment | US$ in thousands | 352,604 | 337,559 | 325,783 | 272,445 | 248,606 | 219,559 | 207,289 | 195,282 | 193,141 | 184,048 | 172,381 | 163,041 | 158,200 | 145,126 | 136,208 | 122,740 | 130,236 | 131,048 | 129,185 | 125,353 |
| Fixed asset turnover | 8.64 | 8.67 | 8.63 | 10.06 | 10.54 | 11.40 | 11.32 | 10.95 | 10.04 | 9.72 | 9.87 | 10.15 | 10.38 | 11.45 | 12.13 | 13.13 | 11.70 | 11.26 | 10.80 | 10.63 |
February 4, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,045,861K ÷ $352,604K
= 8.64
Fixed asset turnover is a key financial ratio that indicates how efficiently a company is using its fixed assets to generate revenue. Pure Storage Inc's fixed asset turnover has exhibited a generally increasing trend over the past few quarters, ranging from 8.63 to 13.13. This suggests that the company has been more effective in utilizing its fixed assets to generate sales over time.
A high fixed asset turnover ratio like the ones observed for Pure Storage Inc indicates that the company is able to generate a significant amount of revenue relative to the value of its fixed assets. This could imply that the company's operational efficiency and asset utilization have been improving, allowing it to generate more sales with the same level of investment in fixed assets.
Overall, the increasing trend in Pure Storage Inc's fixed asset turnover ratio signifies a positive sign of operational efficiency and effective asset management within the company. It indicates that the company is efficiently converting its investment in fixed assets into sales revenue, which can be beneficial for its profitability and overall financial performance.
Peer comparison
Feb 4, 2024