Pure Storage Inc (PSTG)
Interest coverage
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 4, 2024 | Jan 31, 2024 | Nov 5, 2023 | Oct 31, 2023 | Aug 6, 2023 | Jul 31, 2023 | Apr 30, 2023 | Feb 5, 2023 | Jan 31, 2023 | Nov 6, 2022 | Oct 31, 2022 | Aug 7, 2022 | Jul 31, 2022 | May 8, 2022 | Apr 30, 2022 | Feb 6, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 134,181 | 150,815 | 146,275 | 202,886 | 302,768 | 232,348 | 168,658 | 28,489 | 36,716 | 98,880 | 95,778 | 163,591 | 97,102 | 46,881 | 30,179 | 11,780 | 25,500 | 40,904 | 33,242 | 10,173 |
| Interest expense (ttm) | US$ in thousands | 7,813 | 8,008 | 8,125 | 8,190 | 8,272 | 8,192 | 8,112 | 7,403 | 6,458 | 5,645 | 4,800 | 4,532 | 4,384 | 4,236 | 4,601 | 4,966 | 13,875 | 22,784 | 30,405 | 37,928 |
| Interest coverage | 17.17 | 18.83 | 18.00 | 24.77 | 36.60 | 28.36 | 20.79 | 3.85 | 5.69 | 17.52 | 19.95 | 36.10 | 22.15 | 11.07 | 6.56 | 2.37 | 1.84 | 1.80 | 1.09 | 0.27 |
January 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $134,181K ÷ $7,813K
= 17.17
Pure Storage Inc's interest coverage ratio has shown significant variability over the period from February 6, 2022, to January 31, 2025. The interest coverage ratio measures the company's ability to meet its interest obligations on outstanding debt, with a higher ratio indicating a greater ability to do so.
Initially, on February 6, 2022, Pure Storage had a low interest coverage ratio of 0.27, indicating a limited ability to cover its interest expenses from its operating profits. However, the company's interest coverage improved in the subsequent months, reaching 1.09 on April 30, 2022, and further increasing to 1.80 on May 8, 2022.
The trend of improvement in interest coverage continued, with the ratio reaching 2.37 on August 7, 2022, and showing significant growth to 6.56 on October 31, 2022. The interest coverage ratio peaked at 36.10 on February 5, 2023, reflecting Pure Storage's strong capability to meet its interest obligations several times over from its operating earnings.
Following this peak, the interest coverage ratio exhibited fluctuations but generally remained at healthy levels above 5 through April 30, 2023. However, it dipped to 3.85 on October 31, 2023, before rebounding to 36.60 on February 4, 2024, and maintaining relatively high levels in the subsequent periods.
In the most recent data available on January 31, 2025, Pure Storage's interest coverage ratio stood at 17.17, suggesting the company continues to have a comfortable ability to cover its interest expenses from its operating income.
Overall, the trend in Pure Storage's interest coverage ratio reflects fluctuations but generally shows a positive trajectory, indicating the company's improving ability to meet its interest obligations over the analyzed period.
Peer comparison
Jan 31, 2025