Pure Storage Inc (PSTG)

Short-term

Turnover ratios

Based on the data provided, let's analyze Pure Storage Inc's activity ratios:

1. Inventory Turnover: The inventory turnover ratio measures how efficiently a company manages its inventory. Pure Storage Inc's inventory turnover ratio fluctuated over the periods but generally remained high, indicating that the company is selling its products quickly. This suggests effective inventory management.

2. Receivables Turnover: The receivables turnover ratio reflects how efficiently a company collects its accounts receivables. Pure Storage Inc had limited data available for this ratio, but the values indicated a moderate turnover of receivables. A higher turnover ratio would imply faster collection of receivables, which could improve cash flow.

3. Payables Turnover: The payables turnover ratio measures how quickly a company pays its suppliers. Pure Storage Inc had varying data points for this ratio, showing fluctuations in the payment cycle. A higher turnover ratio could indicate that the company is efficiently managing its payables by paying suppliers promptly.

4. Working Capital Turnover: The working capital turnover ratio assesses how well a company utilizes its working capital to generate sales. Pure Storage Inc's working capital turnover ratio generally decreased over the periods, which may suggest a decline in the efficiency of working capital utilization in generating sales.

Overall, Pure Storage Inc appears to manage its inventory effectively, has room for improvement in optimizing working capital utilization, and would benefit from consistent data to analyze receivables and payables turnover ratios more accurately.

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Average number of days

Based on the provided data, let's analyze the activity ratios of Pure Storage Inc:

1. Days of Inventory on Hand (DOH):
- The average DOH for Pure Storage Inc over the period is approximately 13 days.
- Pure Storage Inc has effectively managed its inventory levels consistently around 13 days.

2. Days of Sales Outstanding (DSO):
- The DSO data is incomplete, with only a few data points available for analysis.
- There is a lack of consistent trend analysis for DSO over the period under review.

3. Number of Days of Payables:
- The average number of days of payables for Pure Storage Inc is around 20 days.
- The company has been able to maintain a stable payment period for its suppliers, with fluctuations observed in some periods.

Overall, Pure Storage Inc has shown efficiency in managing its inventory levels and payables, but more consistent and complete data for DSO is required to provide a comprehensive analysis of its activity ratios.

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Long-term

Pure Storage Inc's fixed asset turnover has fluctuated over the years, ranging from a low of 5.87 to a high of 12.73. This ratio measures how effectively the company is generating revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is using its fixed assets more efficiently to generate sales.

On the other hand, the total asset turnover ratio has also been varying, with values ranging from 0.79 to 0.97. This ratio reflects the company's ability to generate sales relative to its total assets. A higher total asset turnover ratio signifies that the company is efficiently utilizing its assets to generate revenue.

Overall, Pure Storage Inc's fixed asset turnover and total asset turnover ratios indicate the company's effectiveness in utilizing its assets to generate sales. It is important for the company to monitor these ratios to ensure optimal asset utilization and profitability in the long term.