Pure Storage Inc (PSTG)
Debt-to-capital ratio
| Feb 4, 2024 | Nov 5, 2023 | Aug 6, 2023 | Feb 5, 2023 | Nov 6, 2022 | Aug 7, 2022 | May 8, 2022 | Feb 6, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 100,000 | 100,000 | 100,000 | 0 | 0 | 0 | 0 | 786,779 | 778,366 | 770,662 | 763,064 | 755,814 | 748,422 | — | — | 477,007 | 470,014 | 463,118 | 456,318 | 449,828 |
| Total stockholders’ equity | US$ in thousands | 1,270,090 | 1,148,460 | 986,328 | 941,233 | 840,508 | 761,358 | 727,094 | 754,336 | 724,424 | 697,444 | 715,473 | 750,006 | 735,081 | 746,106 | 756,858 | 830,118 | 777,950 | 737,539 | 743,976 | 737,780 |
| Debt-to-capital ratio | 0.07 | 0.08 | 0.09 | 0.00 | 0.00 | 0.00 | 0.00 | 0.51 | 0.52 | 0.52 | 0.52 | 0.50 | 0.50 | 0.00 | 0.00 | 0.36 | 0.38 | 0.39 | 0.38 | 0.38 |
February 4, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $100,000K ÷ ($100,000K + $1,270,090K)
= 0.07
The debt-to-capital ratio of Pure Storage Inc has shown fluctuations over the past few quarters, indicating changes in the company's capital structure and leverage position.
In the recent quarter, as of February 4, 2024, the debt-to-capital ratio stood at 0.07, which suggests a relatively low level of debt in comparison to the total capital of the company. This could indicate a conservative approach to financing operations and potentially lower financial risk.
Looking back at the previous quarters, we observe a slight increase in the ratio from 0.08 in November 2023 to 0.09 in August 2023. This uptick might indicate an increase in debt relative to the total capital employed by the company during that period.
However, the ratio dropped to 0.00 in the earlier quarters of 2023 and remained at this low level until February 2022. This sudden decrease could signal a significant shift in the company's capital structure, possibly due to changes in debt levels or an increase in capital.
A notable spike in the debt-to-capital ratio occurred in the quarter ending February 6, 2022, where the ratio surged to 0.51, indicating a substantial amount of debt relative to the total capital. This could suggest a period of increased leverage or a strategic decision to raise capital through debt financing.
Subsequently, the ratio remained elevated around the range of 0.50 to 0.52 from February 2022 to August 2022, before dropping back to 0.00 in the following quarter.
Overall, the trend in Pure Storage Inc's debt-to-capital ratio shows variability, with periods of low debt levels followed by spikes indicating potential changes in the company's capital structure and financing strategies. It is essential for investors and analysts to monitor these fluctuations to assess the company's risk profile and financial health accurately.
Peer comparison
Feb 4, 2024