Pure Storage Inc (PSTG)
Debt-to-equity 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-equity ratio | 0.08 | 0.09 | 0.10 | 0.00 | 0.00 | 0.00 | 0.00 | 1.04 | 1.07 | 1.10 | 1.07 | 1.01 | 1.02 | 0.00 | 0.00 | 0.57 | 0.60 | 0.63 | 0.61 | 0.61 |
February 4, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $100,000K ÷ $1,270,090K
= 0.08
The debt-to-equity ratio of Pure Storage Inc has shown some fluctuations over the past several quarters. From January 2019 to August 2020, the company maintained a relatively low debt-to-equity ratio, with values ranging from 0.00 to 0.63. However, starting from February 2022, the ratio increased significantly, reaching a peak of 1.10 in August 2024. This increase suggests that the company has taken on more debt relative to its equity during this period.
It is important to note that a high debt-to-equity ratio can indicate higher financial risk, as it implies that the company is relying more on debt to finance its operations and growth, which may lead to increased interest expenses and potential solvency issues. On the other hand, a low ratio generally indicates a more conservative financial structure, with less reliance on borrowed funds.
Overall, the trend in Pure Storage Inc's debt-to-equity ratio highlights a shift towards a more leveraged position in recent quarters, which may warrant further analysis to understand the company's strategic financing decisions and their potential implications for financial health and stability.
Peer comparison
Feb 4, 2024