Pure Storage Inc (PSTG)
Financial leverage ratio
| Feb 4, 2024 | Feb 5, 2023 | Feb 6, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,655,760 | 3,543,460 | 3,135,320 | 2,819,440 | 2,364,200 |
| Total stockholders’ equity | US$ in thousands | 1,270,090 | 941,233 | 754,336 | 750,006 | 830,118 |
| Financial leverage ratio | 2.88 | 3.76 | 4.16 | 3.76 | 2.85 |
February 4, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,655,760K ÷ $1,270,090K
= 2.88
The financial leverage ratio of Pure Storage Inc has shown fluctuations over the past five years. As of February 4, 2024, the financial leverage ratio stands at 2.88, indicating a moderate level of leverage. Comparing this to the ratios of the previous years, we observe a decreasing trend from 3.76 in February 5, 2023, to 2.85 in February 2, 2020. This suggests that the company has been reducing its reliance on debt to finance its operations and investments over the last few years, which could imply a stronger financial position and reduced risk of financial distress. However, it is essential to further analyze the company's capital structure and overall financial health to fully assess the impact of this trend on its long-term sustainability and growth prospects.
Peer comparison
Feb 4, 2024