Pure Storage Inc (PSTG)
Payables 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 |
| Payables | US$ in thousands | 82,757 | 67,121 | 70,704 | 67,530 | 77,651 |
| Payables turnover | 25.95 | 30.96 | 25.19 | 22.84 | 19.20 |
February 4, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,147,880K ÷ $82,757K
= 25.95
The payables turnover ratio for Pure Storage Inc has shown a fluctuating trend over the past five years. The ratio was 25.95 in Feb 4, 2024, which indicates that the company is able to pay off its accounts payable approximately 25.95 times during the year.
Comparing this to the previous years, there was a slight decrease from 30.96 in Feb 5, 2023 to 25.19 in Feb 6, 2022. However, the ratio rebounded in the most recent year, showing an improvement to 25.95. This suggests that the company has been managing its accounts payable more efficiently in the latest year.
Overall, Pure Storage Inc has demonstrated a relatively strong ability to turn over its payables into cash over the years, with the ratio consistently above 20. It is essential to consider the industry benchmarks and the company's specific circumstances when evaluating the effectiveness of its payables management.
Peer comparison
Feb 4, 2024