Pure Storage Inc (PSTG)
Inventory turnover
| Jan 31, 2025 | Feb 4, 2024 | Jan 31, 2024 | Feb 5, 2023 | Jan 31, 2023 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 955,455 | 2,147,880 | 809,430 | 2,077,820 | 855,788 |
| Inventory | US$ in thousands | 42,810 | 42,663 | 42,663 | 50,152 | 52,095 |
| Inventory turnover | 22.32 | 50.35 | 18.97 | 41.43 | 16.43 |
January 31, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $955,455K ÷ $42,810K
= 22.32
To analyze Pure Storage Inc's inventory turnover, we will calculate the inventory turnover ratio for each fiscal year based on the provided data. The inventory turnover ratio is calculated by dividing the Cost of Goods Sold (COGS) by the average inventory for a specific period.
1. January 31, 2023:
Inventory Turnover = COGS / Average Inventory
Inventory Turnover = 1 / 16.43 = 0.061
2. February 5, 2023:
Inventory Turnover = COGS / Average Inventory
Inventory Turnover = 1 / 41.43 = 0.024
3. January 31, 2024:
Inventory Turnover = COGS / Average Inventory
Inventory Turnover = 1 / 18.97 = 0.053
4. February 4, 2024:
Inventory Turnover = COGS / Average Inventory
Inventory Turnover = 1 / 50.35 = 0.020
5. January 31, 2025:
Inventory Turnover = COGS / Average Inventory
Inventory Turnover = 1 / 22.32 = 0.045
Analyzing the inventory turnover ratios over the years, we observe fluctuations in Pure Storage Inc's inventory turnover efficiency. Higher inventory turnover ratios indicate that the company is selling its inventory more quickly, which is generally positive as it implies efficient inventory management. In contrast, lower ratios may suggest inventory management issues or slower inventory turnover.
Based on the data provided, Pure Storage Inc's inventory turnover ranged from 16.43 to 50.35, showing variability in how quickly the company is moving its inventory over the years. It is important for the company to monitor and manage its inventory turnover efficiently to optimize its operations and maintain a healthy balance between inventory levels and sales.
Peer comparison
Jan 31, 2025