Pure Storage Inc (PSTG)

Return on total capital

Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Feb 4, 2024 Jan 31, 2024 Nov 5, 2023 Oct 31, 2023 Aug 6, 2023 Jul 31, 2023 Apr 30, 2023 Feb 5, 2023 Jan 31, 2023 Nov 6, 2022 Oct 31, 2022 Aug 7, 2022 Jul 31, 2022 May 8, 2022 Apr 30, 2022 Feb 6, 2022
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 134,181 150,815 146,275 202,886 302,768 232,348 168,658 28,489 36,716 98,880 95,778 163,591 97,102 46,881 30,179 11,780 25,500 40,904 33,242 10,173
Long-term debt US$ in thousands 100,000 100,000 100,000 0 0 0 0 786,779
Total stockholders’ equity US$ in thousands 1,306,480 1,410,590 1,453,160 1,373,970 1,270,090 1,270,090 1,148,460 1,148,460 986,328 986,328 905,807 941,233 941,233 840,508 840,508 761,358 761,358 727,094 727,094 754,336
Return on total capital 10.27% 10.69% 10.07% 14.77% 22.10% 18.29% 13.51% 2.48% 3.38% 10.03% 10.57% 17.38% 10.32% 5.58% 3.59% 1.55% 3.35% 5.63% 4.57% 0.66%

January 31, 2025 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $134,181K ÷ ($—K + $1,306,480K)
= 10.27%

Return on total capital is a key financial ratio that indicates how efficiently a company generates profits from its total capital employed, comprising both equity and debt. Analyzing the return on total capital trend of Pure Storage Inc from February 6, 2022, to January 31, 2025, reveals fluctuations in the company's performance. The ratio started at a low of 0.66% on February 6, 2022, showing an increase to 22.10% on February 4, 2024, and then gradually declined to 10.27% by January 31, 2025.

The significant rise in return on total capital from February 6, 2022, to February 4, 2024, indicates improved efficiency in generating profits relative to the capital employed. However, the subsequent decrease suggests a potential decline in profitability or a less effective utilization of capital. Overall, Pure Storage Inc's return on total capital has displayed variability over the period, with the latest figure indicating a relatively stable performance in generating returns on its total capital. Additional analysis and comparison with industry benchmarks would provide further insights into Pure Storage Inc's financial health and efficiency.


Peer comparison

Jan 31, 2025

Company name
Symbol
Return on total capital
Pure Storage Inc
PSTG
10.27%
NetApp Inc
NTAP
146.03%
Seagate Technology PLC
STX
20.98%
Western Digital Corporation
WDC
-1.41%