Pure Storage Inc (PSTG)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 723,583 | 894,569 | 965,028 | 900,615 | 702,536 | 702,536 | 529,191 | 529,191 | 408,900 | 408,900 | 378,285 | 580,854 | 580,854 | 795,931 | 795,931 | 652,567 | 652,567 | 455,237 | 455,237 | 466,199 |
| Short-term investments | US$ in thousands | 798,237 | 753,960 | 855,453 | 823,397 | 828,557 | 828,557 | 821,868 | 821,868 | 819,777 | 819,777 | 805,715 | 1,001,350 | 1,001,350 | 669,173 | 669,173 | 709,889 | 709,889 | 836,725 | 836,725 | 947,073 |
| 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 |
| Cash ratio | 0.95 | 1.14 | 1.42 | 1.41 | 1.12 | 1.12 | 1.09 | 1.09 | 1.02 | 1.02 | 1.07 | 0.90 | 0.90 | 0.90 | 0.90 | 0.89 | 0.89 | 0.90 | 1.49 | 1.48 |
January 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($723,583K
+ $798,237K)
÷ $1,596,540K
= 0.95
The cash ratio of Pure Storage Inc has shown some fluctuations over the past few years, ranging from a low of 0.89 to a high of 1.49. The cash ratio measures the company's ability to cover its current liabilities with cash and cash equivalents. A ratio of 1 or higher is generally considered favorable, indicating that the company has enough cash on hand to cover its short-term obligations.
Looking at the data provided, we can see that Pure Storage Inc's cash ratio has generally remained above 1 since April 2022, indicating a strong ability to cover its current liabilities with cash. However, there was a slight dip in the cash ratio in May and July 2022, when it fell to 0.90. This could indicate a temporary decrease in cash reserves relative to current liabilities during those months.
Subsequently, the cash ratio improved and remained relatively stable, staying above 1 from April 2023 to July 2024. This indicates that Pure Storage Inc maintained a healthy level of cash reserves compared to its short-term obligations during this period.
The most recent data available shows a cash ratio of 0.95 as of January 31, 2025, which is slightly below 1. This may suggest a decrease in cash reserves relative to current liabilities, potentially necessitating closer monitoring of liquidity and working capital management by the company moving forward.
Overall, Pure Storage Inc has generally maintained a healthy cash position over the analyzed period, with some fluctuations in the cash ratio that may require further examination to understand the underlying reasons and implications for the company's financial health and liquidity management.
Peer comparison
Jan 31, 2025