Pure Storage Inc (PSTG)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,045,861 | 2,925,792 | 2,812,791 | 2,740,340 | 2,620,290 | 2,503,928 | 2,347,376 | 2,138,936 | 1,939,256 | 1,789,279 | 1,701,785 | 1,655,283 | 1,642,376 | 1,661,874 | 1,651,679 | 1,612,149 | 1,523,755 | 1,475,105 | 1,395,086 | 1,332,979 |
| Total current assets | US$ in thousands | 2,498,050 | 2,247,030 | 2,041,060 | 2,474,860 | 2,208,670 | 2,021,010 | 1,874,610 | 2,192,180 | 1,926,630 | 1,859,560 | 1,784,070 | 1,908,170 | 1,743,310 | 1,812,380 | 1,757,870 | 1,890,390 | 1,722,180 | 1,649,940 | 1,607,030 | 1,701,830 |
| Total current liabilities | US$ in thousands | 1,365,680 | 1,237,900 | 1,203,810 | 1,749,870 | 1,623,170 | 1,525,310 | 1,441,360 | 952,320 | 779,798 | 754,727 | 670,299 | 760,653 | 659,459 | 607,211 | 563,387 | 614,741 | 520,295 | 514,553 | 479,960 | 509,816 |
| Working capital turnover | 2.69 | 2.90 | 3.36 | 3.78 | 4.48 | 5.05 | 5.42 | 1.73 | 1.69 | 1.62 | 1.53 | 1.44 | 1.52 | 1.38 | 1.38 | 1.26 | 1.27 | 1.30 | 1.24 | 1.12 |
February 4, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,045,861K ÷ ($2,498,050K – $1,365,680K)
= 2.69
The working capital turnover of Pure Storage Inc has varied over the period provided. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is generating more sales per unit of working capital.
Based on the data:
- The working capital turnover ratio ranged from a low of 1.12 to a high of 5.42 over the period.
- There seems to be a general increasing trend in the working capital turnover ratio from 2019 to 2022, indicating improving efficiency in utilizing working capital to generate sales.
- However, the ratio decreased in the most recent periods, suggesting a potential decrease in the efficiency of working capital utilization.
- The volatility in the ratio may be due to changes in sales levels, inventory management, accounts receivable, or accounts payable management.
Further analysis and comparison with industry standards and peers would provide a clearer picture of Pure Storage Inc's working capital management efficiency over time.
Peer comparison
Feb 4, 2024