Pure Storage Inc (PSTG)

Short-term

Turnover ratios

Pure Storage Inc's inventory turnover has been relatively stable over the periods analyzed, indicating efficient management of inventory levels. The company effectively turns over its inventory, on average, around 40 times per year, with a noticeable improvement in recent quarters.

The receivables turnover ratio has shown some variations but has generally been within a moderate range, suggesting that Pure Storage Inc collects its accounts receivables at a reasonable pace. The consistent figures also imply effective credit management practices.

On the other hand, the payables turnover ratio has fluctuated significantly, indicating variations in the company's payment terms with suppliers. Despite the fluctuations, the ratio remains relatively high, implying that Pure Storage Inc pays its suppliers relatively quickly.

The working capital turnover ratio has shown a decreasing trend, indicating a decline in efficiency in generating revenue from working capital. The decreasing trend may suggest potential challenges in using its working capital effectively to drive sales.

Overall, Pure Storage Inc has shown efficient management of inventory and receivables, albeit with some fluctuations in payables turnover. The decreasing trend in working capital turnover warrants further attention to ensure optimal utilization of resources for revenue generation.

---

Average number of days

Days of Inventory on Hand (DOH) for Pure Storage Inc has shown a fluctuating trend over the past few periods, ranging from 7.20 days to 13.41 days. The company had lower inventory turnover in the earlier periods, indicating a longer period required to sell inventory. However, in recent periods, the DOH has been decreasing, which suggests a more efficient management of inventory levels.

Days of Sales Outstanding (DSO) has also been varied, ranging from 66.66 days to 92.51 days. The DSO measures how long it takes for the company to collect revenue after a sale. Pure Storage Inc's DSO has not been consistent, indicating potential issues with credit and collection policies that may impact cash flow.

The Number of Days of Payables reflects the average number of days the company takes to pay its suppliers. Pure Storage Inc's payables period has varied between 9.60 days and 31.05 days across the analyzed periods. This suggests fluctuations in the company's payment policies and relationships with suppliers.

Overall, the activity ratios of Pure Storage Inc indicate some variability in managing inventory, collecting sales revenue, and paying suppliers. The company should focus on maintaining a balance between these elements to improve operational efficiency and cash flow management.

---

Long-term

The fixed asset turnover ratio for Pure Storage Inc has been fluctuating over the observed periods, ranging from 8.63 to 13.13 times. This ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue. A higher ratio suggests that the company is effectively using its property, plant, and equipment to generate sales.

On the other hand, the total asset turnover ratio also shows variations, with values ranging from 0.59 to 0.90. This ratio measures the company's ability to generate sales from its total assets. A higher total asset turnover ratio indicates that the company is generating more revenue per dollar of assets.

Overall, the fixed asset turnover ratios are consistently higher than the total asset turnover ratios, indicating that Pure Storage Inc is more efficient in generating revenue from its fixed assets compared to its total assets. However, the fluctuating nature of these ratios suggests that the company's asset utilization efficiency is not stable and may require further analysis to understand the underlying reasons for these fluctuations.