Pure Storage Inc (PSTG)

The solvency ratios for Pure Storage Inc indicate a strong financial position over the past five years. The Debt-to-assets ratio has shown a consistent decline, reaching a low of 0.00 in February 5, 2023, signaling a reduced reliance on debt to finance assets. The Debt-to-capital ratio has also shown a similar pattern, with a substantial decrease to 0.00 in February 5, 2023, indicating a minimal use of debt in the capital structure.

The Debt-to-equity ratio has exhibited a declining trend, with the ratio significantly decreasing in recent years. This suggests that the company has been reducing its reliance on debt financing relative to equity. The Financial leverage ratio has fluctuated over the period but generally remained at moderate levels, indicating that the company's assets are primarily financed through equity rather than debt.

Overall, the solvency ratios suggest that Pure Storage Inc has a prudent capital structure and low financial risk, as evidenced by the decreasing trend in debt ratios and the stable financial leverage ratio. These ratios reflect the company's ability to meet its financial obligations and maintain a healthy balance between debt and equity in its capital structure.

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Coverage ratios

The interest coverage ratio of Pure Storage Inc has exhibited fluctuations over the past five years. In the most recent fiscal year, as of February 4, 2024, the interest coverage ratio stood at 13.11, indicating the company's ability to cover its interest expenses 13.11 times over with its operating profits. This represents a decrease from the previous year's ratio of 20.33 as of February 5, 2023.

Comparing these figures to the ratios from the prior years, we observe significant variability. In February 6, 2022, the interest coverage ratio was reported as -2.50, suggesting the company's operating profits were insufficient to cover its interest expenses, resulting in a negative coverage. The trend continued in the fiscal year ending January 31, 2021, with an interest coverage ratio of -7.60, indicating a further decline in the company's ability to meet its interest obligations from its operating earnings.

The lowest ratio was observed in February 2, 2020, at -5.98, revealing a consistent struggle with covering interest expenses with operating profits. Overall, while there has been improvement in the interest coverage ratio in the most recent year, the historical data highlights past challenges in generating sufficient operating income to cover the company's interest payments.