Pure Storage Inc (PSTG)
Cash conversion cycle
| Jan 31, 2025 | Feb 4, 2024 | Jan 31, 2024 | Feb 5, 2023 | Jan 31, 2023 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 16.35 | 7.25 | 19.24 | 8.81 | 22.22 |
| Days of sales outstanding (DSO) | days | — | 85.79 | — | 81.58 | — |
| Number of days of payables | days | — | 14.06 | — | 11.79 | — |
| Cash conversion cycle | days | 16.35 | 78.97 | 19.24 | 78.60 | 22.22 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 16.35 + — – —
= 16.35
The cash conversion cycle of Pure Storage Inc shows fluctuations over the years. As of January 31, 2023, the company had a cash conversion cycle of 22.22 days, indicating that it takes approximately 22 days to convert inventory into cash. By February 5, 2023, the cycle increased to 78.60 days, suggesting a lengthening period in converting inventory to cash.
In the following year, as of January 31, 2024, Pure Storage Inc managed to reduce its cash conversion cycle to 19.24 days, indicating an improvement in the efficiency of its working capital management. However, by February 4, 2024, the cycle increased again to 78.97 days, potentially signaling challenges in managing inventory and accounts receivable effectively.
As of January 31, 2025, the company was able to further decrease its cash conversion cycle to 16.35 days, showcasing a positive trend in converting inventory and receivables into cash more rapidly. Overall, monitoring and managing the cash conversion cycle is crucial for Pure Storage Inc to optimize its working capital efficiency and cash flow management over time.
Peer comparison
Jan 31, 2025