Pure Storage Inc (PSTG)
Inventory turnover
| Feb 4, 2024 | Feb 5, 2023 | Feb 6, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,147,880 | 2,077,820 | 1,780,930 | 1,542,290 | 1,490,770 |
| Inventory | US$ in thousands | 42,663 | 50,152 | 38,942 | 46,733 | 38,518 |
| Inventory turnover | 50.35 | 41.43 | 45.73 | 33.00 | 38.70 |
February 4, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,147,880K ÷ $42,663K
= 50.35
The inventory turnover ratio for Pure Storage Inc has been showing a consistent upward trend over the past five years, increasing from 38.70 in February 2020 to 50.35 in February 2024. This indicates that the company's efficiency in managing its inventory has improved significantly over the years.
A high inventory turnover ratio signifies that Pure Storage Inc is selling its inventory quickly, which is a positive indicator of effective inventory management and strong sales performance. It shows that the company is efficiently utilizing its inventory to generate sales revenue.
The increasing trend in inventory turnover ratio may suggest that Pure Storage Inc has become more agile in responding to changing market demands and customer preferences. This could also mean that the company is maintaining leaner inventory levels, which can lead to cost savings and improved cash flow.
Overall, the rising inventory turnover ratio for Pure Storage Inc reflects positively on the company's operational efficiency and effectiveness in managing its inventory resources.
Peer comparison
Feb 4, 2024