Pure Storage Inc (PSTG)
Profitability ratios
Return on sales
| Feb 4, 2024 | Feb 5, 2023 | Feb 6, 2022 | Jan 31, 2021 | Feb 2, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 71.74% | 69.25% | 68.84% | 69.41% | 70.31% |
| Operating profit margin | 1.90% | 3.05% | -4.60% | -15.77% | -11.87% |
| Pretax margin | 3.22% | 3.35% | -6.01% | -16.32% | -12.07% |
| Net profit margin | 2.18% | 2.67% | -6.70% | -17.04% | -12.47% |
Pure Storage Inc's profitability ratios show a fluctuating trend over the past five years. The gross profit margin has been relatively stable, ranging between 68.84% and 71.74%. This indicates that the company has been able to effectively manage its production costs and generate a consistent level of profits from its core operations.
However, the operating profit margin has varied more significantly, with positive margins in some years and negative margins in others. This suggests that Pure Storage Inc has experienced fluctuations in its operating expenses and efficiency in converting sales into operating profits.
Similarly, the pretax and net profit margins have also shown volatility over the years, with negative margins in some periods. This indicates that the company has faced challenges in controlling its non-operating expenses and taxes, resulting in lower overall profitability.
Overall, while Pure Storage Inc has been able to maintain a relatively healthy gross profit margin, its operating, pretax, and net profit margins have been more variable, reflecting potential areas for improvement in cost management and operational efficiency.
Return on investment
| Feb 4, 2024 | Feb 5, 2023 | Feb 6, 2022 | Jan 31, 2021 | Feb 2, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.46% | 2.36% | -3.14% | -9.26% | -8.09% |
| Return on assets (ROA) | 1.68% | 2.06% | -4.57% | -10.00% | -8.50% |
| Return on total capital | 7.16% | 10.26% | -5.96% | -15.86% | -12.76% |
| Return on equity (ROE) | 4.83% | 7.76% | -18.99% | -37.61% | -24.21% |
Pure Storage Inc's profitability ratios have shown a mixed performance over the past five years.
1. Operating return on assets (Operating ROA) has decreased from 2.36% in 2023 to 1.46% in 2024, indicating a decline in the company's ability to generate operating profits from its assets in the most recent period.
2. Return on assets (ROA) has fluctuated over the years, but it has generally remained positive. The ROA was 1.68% in 2024, reflecting the company's ability to generate profits from its total assets.
3. Return on total capital has also shown variability, with a significant decrease from 10.26% in 2023 to 7.16% in 2024. This ratio measures how efficiently the company uses both equity and debt to generate profits.
4. Return on equity (ROE) has fluctuated as well, with a slight decrease from 7.76% in 2023 to 4.83% in 2024. The negative ROE values in previous years indicate that the company was not effectively generating profits for its shareholders.
Overall, while Pure Storage Inc has shown positive profitability ratios in recent years, there are fluctuations and downward trends in some key ratios, indicating potential challenges in effectively utilizing assets and capital to generate profits for both the company and its shareholders.