Pure Storage Inc (PSTG)
Quick ratio
| Jan 31, 2025 | Feb 4, 2024 | Jan 31, 2024 | Feb 5, 2023 | Jan 31, 2023 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 723,583 | 702,536 | 702,536 | 580,854 | 580,854 |
| Short-term investments | US$ in thousands | 798,237 | 828,557 | 828,557 | 1,001,350 | 1,001,350 |
| Receivables | US$ in thousands | — | 662,179 | — | 612,491 | — |
| Total current liabilities | US$ in thousands | 1,596,540 | 1,365,680 | 1,365,680 | 1,749,870 | 1,751,810 |
| Quick ratio | 0.95 | 1.61 | 1.12 | 1.25 | 0.90 |
January 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($723,583K
+ $798,237K
+ $—K)
÷ $1,596,540K
= 0.95
The quick ratio of Pure Storage Inc has shown some fluctuation over the years. As of January 31, 2023, the quick ratio was 0.90, indicating that the company had only $0.90 in quick assets available to cover each $1 of current liabilities, which may have raised concerns about its short-term liquidity position. However, by February 5, 2023, the quick ratio improved to 1.25, suggesting that the company had increased its liquid assets to better meet its short-term obligations.
In the following years, the quick ratio continued to vary. As of January 31, 2024, the ratio stood at 1.12, showing a slight decline from the previous period but still indicating that Pure Storage Inc had an adequate level of quick assets relative to its current liabilities. By February 4, 2024, the quick ratio significantly rose to 1.61, signaling a notable improvement in the company's liquidity position.
However, as of January 31, 2025, the quick ratio decreased to 0.95, reverting back to a level below 1. This may suggest that Pure Storage Inc had fewer liquid assets available to cover its current liabilities, potentially indicating a reduced ability to meet short-term obligations.
Overall, while the quick ratio of Pure Storage Inc has fluctuated over the years, the company has generally maintained a level of quick assets to support its short-term financial obligations. It is important for stakeholders to monitor these ratios consistently to assess the company's liquidity position and ability to meet its short-term liabilities.
Peer comparison
Jan 31, 2025