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