Pure Storage Inc (PSTG)
Working capital turnover
| Feb 4, 2024 | Feb 5, 2023 | Feb 6, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,817,430 | 2,740,340 | 2,138,940 | 1,655,280 | 1,612,150 |
| Total current assets | US$ in thousands | 2,498,050 | 2,474,860 | 2,192,180 | 1,908,170 | 1,890,390 |
| Total current liabilities | US$ in thousands | 1,365,680 | 1,749,870 | 952,320 | 760,653 | 614,741 |
| Working capital turnover | 2.49 | 3.78 | 1.73 | 1.44 | 1.26 |
February 4, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,817,430K ÷ ($2,498,050K – $1,365,680K)
= 2.49
The working capital turnover of Pure Storage Inc has varied over the past five fiscal years. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher working capital turnover implies that the company is effectively managing its current assets to support its sales operations.
In the latest fiscal year ending on February 4, 2024, the working capital turnover ratio was 2.49, showing a decrease from the previous year's ratio of 3.78. This decline suggests that Pure Storage Inc may have experienced challenges in optimizing its working capital to support its revenue generation.
Comparing the current ratio to historical data, there is a notable fluctuation in the working capital turnover ratio. The ratio was the lowest on February 2, 2020, at 1.26, indicating that the company had a lower efficiency in utilizing its working capital to support sales that year. On the other hand, the highest ratio was recorded on February 5, 2023, at 3.78, indicating a significant improvement in working capital efficiency.
Overall, the trend in Pure Storage Inc's working capital turnover suggests some variability in the company's management of working capital over the years. It is crucial for the company to closely monitor and strive to optimize its working capital turnover ratio to enhance operational efficiency and maximize its financial performance.
Peer comparison
Feb 4, 2024