Pure Storage Inc (PSTG)
Return on total capital
| Jan 31, 2025 | Feb 4, 2024 | Jan 31, 2024 | Feb 5, 2023 | Jan 31, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 155,647 | 98,069 | 98,069 | 96,557 | 83,513 |
| Long-term debt | US$ in thousands | — | 100,000 | — | 0 | — |
| Total stockholders’ equity | US$ in thousands | 1,306,480 | 1,270,090 | 1,270,090 | 941,233 | 941,233 |
| Return on total capital | 11.91% | 7.16% | 7.72% | 10.26% | 8.87% |
January 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $155,647K ÷ ($—K + $1,306,480K)
= 11.91%
Based on the provided data, the return on total capital for Pure Storage Inc fluctuated over the years as follows:
- January 31, 2023: 8.87%
- February 5, 2023: 10.26%
- January 31, 2024: 7.72%
- February 4, 2024: 7.16%
- January 31, 2025: 11.91%
The return on total capital ratio indicates the efficiency of the company in generating profits from the total capital invested in the business. Pure Storage Inc experienced varying levels of return on total capital over the years, with the highest return observed in January 31, 2025, at 11.91%, and the lowest return in February 4, 2024, at 7.16%.
It is important for investors and stakeholders to monitor these fluctuations in return on total capital as it reflects the company's ability to utilize its capital effectively to generate returns for its investors.
Peer comparison
Jan 31, 2025