Pure Storage Inc (PSTG)
Quick ratio
| Feb 4, 2024 | Feb 5, 2023 | Feb 6, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 702,536 | 580,854 | 466,199 | 337,147 | 362,635 |
| Short-term investments | US$ in thousands | 828,557 | 1,001,350 | 947,073 | 916,388 | 936,518 |
| Receivables | US$ in thousands | 662,179 | 612,491 | 542,144 | 460,879 | 458,643 |
| Total current liabilities | US$ in thousands | 1,365,680 | 1,749,870 | 952,320 | 760,653 | 614,741 |
| Quick ratio | 1.61 | 1.25 | 2.05 | 2.25 | 2.86 |
February 4, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($702,536K
+ $828,557K
+ $662,179K)
÷ $1,365,680K
= 1.61
The quick ratio of Pure Storage Inc has exhibited fluctuations over the past five years. The quick ratio for the most recent fiscal year (Feb 4, 2024) stands at 1.61, indicating that the company has $1.61 in liquid assets available to cover each dollar of current liabilities.
Compared to the prior year, there has been an improvement in liquidity as the quick ratio increased from 1.25 in Feb 5, 2023. However, when looking further back, there was a notable decrease from 2.05 in Feb 6, 2022. This suggests a potential shift in the company's ability to meet its short-term obligations efficiently.
Furthermore, the quick ratio has been gradually declining since Jan 31, 2021, where it was reported at 2.25, and more significantly lower than the quick ratio of 2.86 on Feb 2, 2020. This downward trend might raise concerns about the company's liquidity position and its ability to cover immediate financial obligations effectively.
Overall, the analysis of Pure Storage Inc's quick ratio indicates fluctuations in liquidity levels over the years, highlighting the importance of closely monitoring the company's ability to meet its short-term liabilities with its current liquid assets.
Peer comparison
Feb 4, 2024