Pure Storage Inc (PSTG)
Working capital turnover
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 4, 2024 | Jan 31, 2024 | Nov 5, 2023 | Oct 31, 2023 | Aug 6, 2023 | Jul 31, 2023 | Apr 30, 2023 | Feb 5, 2023 | Jan 31, 2023 | Nov 6, 2022 | Oct 31, 2022 | Aug 7, 2022 | Jul 31, 2022 | May 8, 2022 | Apr 30, 2022 | Feb 6, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,168,164 | 3,076,661 | 3,035,394 | 3,027,768 | 3,097,127 | 2,993,763 | 2,892,629 | 2,725,791 | 2,779,355 | 2,904,587 | 2,884,186 | 2,970,929 | 2,797,671 | 2,634,236 | 2,578,490 | 2,522,845 | 2,576,053 | 2,637,851 | 2,588,067 | 2,454,254 |
| Total current assets | US$ in thousands | 2,567,280 | 2,559,650 | 2,553,030 | 2,362,380 | 2,498,050 | 2,409,340 | 2,247,030 | 2,247,030 | 2,041,060 | 2,041,060 | 1,867,760 | 2,474,860 | 2,476,800 | 2,208,670 | 2,208,220 | 2,021,010 | 2,021,010 | 1,874,610 | 1,874,610 | 2,192,180 |
| Total current liabilities | US$ in thousands | 1,596,540 | 1,444,630 | 1,282,990 | 1,226,300 | 1,365,680 | 1,365,680 | 1,237,900 | 1,237,900 | 1,203,810 | 1,203,810 | 1,106,200 | 1,749,870 | 1,751,810 | 1,623,170 | 1,622,710 | 1,525,310 | 1,525,310 | 1,441,360 | 868,809 | 952,320 |
| Working capital turnover | 3.26 | 2.76 | 2.39 | 2.67 | 2.74 | 2.87 | 2.87 | 2.70 | 3.32 | 3.47 | 3.79 | 4.10 | 3.86 | 4.50 | 4.40 | 5.09 | 5.20 | 6.09 | 2.57 | 1.98 |
January 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,168,164K ÷ ($2,567,280K – $1,596,540K)
= 3.26
Pure Storage Inc's working capital turnover has shown fluctuations over the provided time period. The ratio ranged from as low as 1.98 on February 6, 2022, to a peak of 6.09 on May 8, 2022. This indicates that, on average, the company was able to turn over its working capital 1.98 times into revenue in February 2022, and 6.09 times in May 2022.
The working capital turnover ratio decreased in the subsequent months, with slight fluctuations until August 2023. From August 2023 to October 2024, the working capital turnover ratio gradually declined from 3.32 to 2.76. However, by January 31, 2025, the ratio improved to 3.26. This suggests that the company became more efficient in utilizing its working capital to generate revenue towards the end of the time period.
Overall, fluctuations in the working capital turnover ratio indicate changes in the efficiency of Pure Storage Inc in converting its working capital into revenue. It is essential for the company to monitor and manage this ratio effectively to ensure optimal utilization of its working capital for sustainable growth and profitability.
Peer comparison
Jan 31, 2025