Pure Storage Inc (PSTG)
Current ratio
| Feb 4, 2024 | Feb 5, 2023 | Feb 6, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,498,050 | 2,474,860 | 2,192,180 | 1,908,170 | 1,890,390 |
| Total current liabilities | US$ in thousands | 1,365,680 | 1,749,870 | 952,320 | 760,653 | 614,741 |
| Current ratio | 1.83 | 1.41 | 2.30 | 2.51 | 3.08 |
February 4, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,498,050K ÷ $1,365,680K
= 1.83
The current ratio of Pure Storage Inc has shown fluctuations over the past five years. As of February 4, 2024, the current ratio stood at 1.83, indicating a notable increase compared to the previous year but a decrease from the ratios reported in the two years prior. This implies that the company's current assets, which are primarily composed of cash and assets that can be quickly converted into cash, were able to cover its current liabilities by a factor of 1.83.
While a current ratio above 1 suggests that Pure Storage Inc is able to meet its short-term obligations, a lower current ratio compared to previous years could indicate a potential decrease in liquidity or an increase in short-term liabilities. It would be important to further investigate the reasons behind the fluctuations in the current ratio to assess the company's financial health and ability to manage its short-term obligations effectively.
Peer comparison
Feb 4, 2024