Pure Storage Inc (PSTG)
Return on total capital
| Feb 4, 2024 | Feb 5, 2023 | Feb 6, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 98,069 | 96,557 | -91,819 | -238,757 | -166,769 |
| Long-term debt | US$ in thousands | 100,000 | 0 | 786,779 | 755,814 | 477,007 |
| Total stockholders’ equity | US$ in thousands | 1,270,090 | 941,233 | 754,336 | 750,006 | 830,118 |
| Return on total capital | 7.16% | 10.26% | -5.96% | -15.86% | -12.76% |
February 4, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $98,069K ÷ ($100,000K + $1,270,090K)
= 7.16%
Pure Storage Inc's return on total capital has fluctuated over the past five years. In February 2024, the return on total capital was 7.16%, showing a decrease from the previous year's 10.26%. This indicates that the company's ability to generate profits from its total capital investment decreased.
In February 2023, Pure Storage Inc experienced a positive trend with a return on total capital of 10.26%, reflecting an improvement compared to the negative returns in the prior two years. However, in February 2022, the company had a negative return on total capital at -5.96%, which may indicate inefficiencies in capital utilization or profitability challenges.
The return on total capital further deteriorated in January 2021 and February 2020, with -15.86% and -12.76% respectively. These consecutive years of negative returns suggest ongoing struggles in generating profits relative to the total capital invested.
Overall, Pure Storage Inc's return on total capital has been volatile, with fluctuations indicating varying levels of efficiency in utilizing its total capital to generate profits over the years. This performance trend underscores the importance of further analysis to identify the underlying factors impacting the company's financial performance.
Peer comparison
Feb 4, 2024