Pure Storage Inc (PSTG)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 702,536 | 529,191 | 408,900 | 580,854 | 795,931 | 652,567 | 455,237 | 466,199 | 404,692 | 340,252 | 300,808 | 337,147 | 263,702 | 355,601 | 347,580 | 362,635 | 304,346 | 268,938 | 287,192 | 447,990 |
| Short-term investments | US$ in thousands | 828,557 | 821,868 | 819,777 | 1,001,350 | 669,173 | 709,889 | 836,725 | 947,073 | 958,180 | 944,285 | 933,376 | 916,388 | 937,718 | 937,514 | 926,560 | 936,518 | 936,969 | 913,521 | 878,958 | 749,482 |
| 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 |
| Cash ratio | 1.12 | 1.09 | 1.02 | 0.90 | 0.90 | 0.89 | 0.90 | 1.48 | 1.75 | 1.70 | 1.84 | 1.65 | 1.82 | 2.13 | 2.26 | 2.11 | 2.39 | 2.30 | 2.43 | 2.35 |
February 4, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($702,536K
+ $828,557K)
÷ $1,365,680K
= 1.12
The cash ratio of Pure Storage Inc has been relatively stable over the analyzed periods, ranging from 0.89 to 2.43. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates that Pure Storage Inc has more than enough cash to cover its short-term obligations, providing a comfortable liquidity position.
The company's cash ratio peaked at 2.43 in January 2019, indicating a strong ability to meet short-term obligations. It declined slightly in subsequent periods but remained above 1.0, suggesting a healthy liquidity position. The fluctuations in the cash ratio may be attributed to changes in cash management practices, investments in growth initiatives, or shifts in working capital requirements.
Overall, Pure Storage Inc's cash ratio demonstrates a consistent ability to meet short-term obligations with cash on hand, reflecting a prudent approach to liquidity management.
Peer comparison
Feb 4, 2024