Pure Storage Inc (PSTG)
Return on equity (ROE)
| Feb 4, 2024 | Nov 5, 2023 | Aug 6, 2023 | Feb 5, 2023 | Nov 6, 2022 | Aug 7, 2022 | May 8, 2022 | Feb 6, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 203,183 | 136,958 | 77,491 | 73,071 | 13,543 | -14,401 | -70,588 | -143,259 | -210,495 | -255,986 | -275,688 | -282,076 | -234,434 | -190,194 | -191,245 | -200,987 | -222,091 | -220,289 | -214,394 | -178,362 |
| Total stockholders’ equity | US$ in thousands | 1,270,090 | 1,148,460 | 986,328 | 941,233 | 840,508 | 761,358 | 727,094 | 754,336 | 724,424 | 697,444 | 715,473 | 750,006 | 735,081 | 746,106 | 756,858 | 830,118 | 777,950 | 737,539 | 743,976 | 737,780 |
| ROE | 16.00% | 11.93% | 7.86% | 7.76% | 1.61% | -1.89% | -9.71% | -18.99% | -29.06% | -36.70% | -38.53% | -37.61% | -31.89% | -25.49% | -25.27% | -24.21% | -28.55% | -29.87% | -28.82% | -24.18% |
February 4, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $203,183K ÷ $1,270,090K
= 16.00%
Pure Storage Inc's return on equity (ROE) has fluctuated over the past several quarters, ranging from a low of -38.53% to a high of 16.00%. The ROE has shown a general downward trend from the beginning of 2019 to the most recent data point in February 2024.
The negative ROE figures from August 2022 to November 2021 indicate that the company's net income was insufficient to cover shareholder equity during those periods. This could be a red flag for investors as it suggests the company may be experiencing financial difficulties or inefficiencies in its operations.
However, the positive ROE figures in 2024 show an improvement in the company's profitability and efficiency in generating returns for shareholders. It is essential for investors to closely monitor Pure Storage Inc's financial performance to assess the sustainability of this upward trend in ROE. Further analysis of the company's financial statements and operations would be necessary to understand the drivers behind these changes in ROE.
Peer comparison
Feb 4, 2024