Pure Storage Inc (PSTG)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,162,290 | 2,092,633 | 2,052,360 | 2,037,881 | 1,989,361 | 1,934,436 | 1,857,897 | 1,747,844 | 1,670,504 | 1,589,646 | 1,542,433 | 1,506,109 | 1,444,458 | 1,440,912 | 1,450,122 | 1,450,246 | 1,419,570 | 1,377,077 | 1,300,724 | 1,216,359 |
| Payables | US$ in thousands | 82,757 | 101,092 | 98,008 | 67,121 | 102,879 | 64,005 | 58,668 | 70,704 | 48,708 | 54,686 | 40,563 | 67,530 | 89,369 | 56,366 | 64,817 | 77,651 | 59,650 | 64,582 | 75,481 | 103,462 |
| Payables turnover | 26.13 | 20.70 | 20.94 | 30.36 | 19.34 | 30.22 | 31.67 | 24.72 | 34.30 | 29.07 | 38.03 | 22.30 | 16.16 | 25.56 | 22.37 | 18.68 | 23.80 | 21.32 | 17.23 | 11.76 |
February 4, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,162,290K ÷ $82,757K
= 26.13
The payables turnover ratio for Pure Storage Inc has fluctuated over the past several periods. The ratio measures how efficiently the company is managing its accounts payable by evaluating how many times the company pays off its suppliers during a specific period.
Analyzing the trend, we observe that the payables turnover ratio reached its peak at 38.03 on May 2, 2021, indicating that Pure Storage was paying off its suppliers 38 times during that year. This suggests efficient management of accounts payable, potentially indicating good relationships with suppliers or effective working capital management.
Conversely, the lowest payables turnover ratio was seen on January 31, 2019, at 11.76. This could indicate a longer time taken by the company to pay off its suppliers during that period, potentially hinting at liquidity challenges or issues with cash flow management.
Overall, the fluctuations in the payables turnover ratio for Pure Storage Inc suggest varying levels of efficiency in managing its accounts payable over the analyzed periods. Further qualitative analysis and comparison with industry benchmarks may provide additional insights into the company's financial health and operational activities.
Peer comparison
Feb 4, 2024