Pure Storage Inc (PSTG)
Profitability ratios
Return on sales
| Jan 31, 2025 | Feb 4, 2024 | Jan 31, 2024 | Feb 5, 2023 | Jan 31, 2023 | |
|---|---|---|---|---|---|
| Gross profit margin | 69.84% | 71.74% | 71.40% | 69.25% | 68.92% |
| Operating profit margin | 2.69% | 1.90% | 1.89% | 3.05% | 3.03% |
| Pretax margin | 4.67% | 3.22% | 3.20% | 3.35% | 3.33% |
| Net profit margin | 3.37% | 2.18% | 2.17% | 2.67% | 2.65% |
Pure Storage Inc's profitability ratios have shown a positive trend over the past few years based on the provided data.
1. Gross Profit Margin: The company's gross profit margin has been increasing steadily from 68.92% in January 2023 to 69.84% in January 2025. This indicates that Pure Storage Inc has been able to efficiently control its production costs and maintain a healthy margin on sales.
2. Operating Profit Margin: The operating profit margin of the company has fluctuated slightly over the years, ranging from 1.89% in January 2024 to 3.05% in February 5, 2023. This metric shows the efficiency of the company in managing its operating expenses in relation to its revenue.
3. Pretax Margin: Pure Storage Inc's pretax margin has also been increasing gradually from 3.33% in January 2023 to 4.67% in January 31, 2025. This indicates that the company has been able to improve its profitability before considering taxes.
4. Net Profit Margin: The net profit margin, reflecting the company's bottom line profitability, has shown improvement over the years, from 2.17% in January 31, 2024 to 3.37% in January 31, 2025. This indicates that Pure Storage Inc has effectively managed its expenses and boosted its net income relative to its total revenue.
Overall, the trends in Pure Storage Inc's profitability ratios suggest that the company has been making positive strides in enhancing its financial performance and maintaining healthy margins in the competitive market.
Return on investment
| Jan 31, 2025 | Feb 4, 2024 | Jan 31, 2024 | Feb 5, 2023 | Jan 31, 2023 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.15% | 1.46% | 1.46% | 2.36% | 2.36% |
| Return on assets (ROA) | 2.69% | 1.68% | 1.68% | 2.06% | 2.06% |
| Return on total capital | 11.91% | 7.16% | 7.72% | 10.26% | 8.87% |
| Return on equity (ROE) | 8.17% | 4.83% | 4.83% | 7.76% | 7.76% |
Based on the provided data, Pure Storage Inc's profitability ratios exhibit varying trends over the analyzed periods.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA remained stable at 2.36% for January 31, 2023, and February 5, 2023, dropping to 1.46% for January 31, 2024, and February 4, 2024, and increasing to 2.15% for January 31, 2025. This ratio indicates how efficiently the company generates operating income from its assets.
2. Return on Assets (ROA):
- The ROA also remained consistent at 2.06% for January 31, 2023, and February 5, 2023. It decreased slightly to 1.68% for January 31, 2024, and February 4, 2024, and then increased to 2.69% for January 31, 2025. This ratio shows the company's ability to generate profits from its total assets.
3. Return on Total Capital:
- The Return on Total Capital saw fluctuations, standing at 8.87% for January 31, 2023, increasing to 10.26% by February 5, 2023, and then declining to 7.72% for January 31, 2024, and further to 7.16% for February 4, 2024. However, it significantly improved to 11.91% by January 31, 2025. This ratio reflects how effectively the company generates returns for both equity and debt holders.
4. Return on Equity (ROE):
- The ROE mirrored the trend of the other ratios, holding steady at 7.76% for January 31, 2023, and February 5, 2023, dropping to 4.83% for January 31, 2024, and February 4, 2024, and then recovering slightly to 8.17% by January 31, 2025. ROE signifies the returns generated for the company's equity shareholders.
In summary, the profitability ratios of Pure Storage Inc demonstrate fluctuations in performance over the analyzed periods. While some ratios remained stable, others experienced both declines and improvements. It is crucial for investors and stakeholders to monitor these ratios to assess the company's financial health and performance accurately.