Pure Storage Inc (PSTG)
Operating return on assets (Operating ROA)
| Feb 4, 2024 | Feb 5, 2023 | Feb 6, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 53,551 | 83,513 | -98,398 | -261,033 | -191,283 |
| Total assets | US$ in thousands | 3,655,760 | 3,543,460 | 3,135,320 | 2,819,440 | 2,364,200 |
| Operating ROA | 1.46% | 2.36% | -3.14% | -9.26% | -8.09% |
February 4, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $53,551K ÷ $3,655,760K
= 1.46%
Operating Return on Assets (ROA) is a key financial metric that indicates how efficiently a company generates operating income from its assets. Analyzing the trend of Pure Storage Inc's operating ROA over the past five years reveals fluctuations in its performance.
In the most recent fiscal year ending on February 4, 2024, Pure Storage Inc reported an operating ROA of 1.46%. This represents a decrease compared to the previous year when the operating ROA stood at 2.36%. Despite the decline, the positive value of the operating ROA suggests that the company is generating operating income from its assets.
Looking back at the past five years, Pure Storage Inc experienced a significant improvement in operating ROA from negative values in fiscal years 2021 and 2022 to positive values in the following years. In particular, the company's operating ROA was -9.26% in January 31, 2021, and -8.09% in February 2, 2020, indicating challenges in generating operating income relative to its assets during those periods.
Overall, the trend in Pure Storage Inc's operating ROA shows some variability, with improvements in recent years but a slight decline in the most recent fiscal year. It is important for the company to continue monitoring and managing its operating efficiency to enhance its profitability and value creation from its asset base.
Peer comparison
Feb 4, 2024