Pure Storage Inc (PSTG)
Debt-to-equity ratio
| Feb 4, 2024 | Feb 5, 2023 | Feb 6, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 100,000 | 0 | 786,779 | 755,814 | 477,007 |
| Total stockholders’ equity | US$ in thousands | 1,270,090 | 941,233 | 754,336 | 750,006 | 830,118 |
| Debt-to-equity ratio | 0.08 | 0.00 | 1.04 | 1.01 | 0.57 |
February 4, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $100,000K ÷ $1,270,090K
= 0.08
Pure Storage Inc's debt-to-equity ratio has shown significant fluctuations over the past five years. As of Feb 4, 2024, the company's debt-to-equity ratio is 0.08, indicating a low level of debt relative to equity. This suggests that Pure Storage has a strong equity base compared to its debt obligations.
In contrast, on Feb 5, 2023, the company had a debt-to-equity ratio of 0.00, implying either minimal or no debt on its balance sheet relative to equity. This could signal a conservative financial management approach or potentially a period of debt reduction or restructuring.
Looking back to Feb 6, 2022, the debt-to-equity ratio spiked to 1.04, indicating higher financial leverage with debt exceeding equity. This suggests a higher level of financial risk and could indicate a shift towards increased borrowing or a decrease in shareholder equity.
Similarly, on Jan 31, 2021, the debt-to-equity ratio was 1.01, indicating a continued high level of financial leverage. This implies that Pure Storage may have been relying more on debt financing to support its operations or growth initiatives.
On Feb 2, 2020, the debt-to-equity ratio was 0.57, representing a moderate level of debt relative to equity. This indicates a balance between debt and equity financing, with neither dominating the company's capital structure.
Overall, the trend in Pure Storage Inc's debt-to-equity ratio reflects fluctuations in its capital structure and financial leverage over the past five years, highlighting the importance of monitoring these ratios to assess the company's financial health and risk profile.
Peer comparison
Feb 4, 2024