Pure Storage Inc (PSTG)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.03 | 0.00 | 0.03 | 0.00 | 0.03 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.25 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.07 | 0.00 | 0.08 | 0.00 | 0.09 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.51 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.08 | 0.00 | 0.09 | 0.00 | 0.10 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1.04 |
| Financial leverage ratio | 3.03 | 2.73 | 2.60 | 2.64 | 2.88 | 2.88 | 2.92 | 2.92 | 3.18 | 3.18 | 3.27 | 3.76 | 3.77 | 3.87 | 3.87 | 4.01 | 4.01 | 3.89 | 3.89 | 4.16 |
Pure Storage Inc's solvency ratios indicate a strong financial position in terms of its ability to meet its long-term financial obligations:
1. Debt-to-assets ratio: The company's debt-to-assets ratio has consistently remained low, ranging from 0.00 to 0.25 over the past few years. This indicates that Pure Storage Inc relies very little on debt financing to fund its assets, which is a positive sign for investors and creditors.
2. Debt-to-capital ratio: Pure Storage Inc's debt-to-capital ratio has also been very low, with values primarily at 0.00. This suggests that the company's capital structure is predominantly equity-based, minimizing financial risk associated with high levels of debt.
3. Debt-to-equity ratio: Similarly, the debt-to-equity ratio has shown a decreasing trend, reaching 0.00 in recent periods. This indicates that Pure Storage Inc has a strong equity base relative to its debt, which enhances its financial stability and resilience.
4. Financial leverage ratio: The financial leverage ratio, which measures the company's financial risk in relation to its equity, has declined over the years from 4.16 to 3.03. A decreasing trend in this ratio indicates that Pure Storage Inc has been reducing its reliance on debt financing, thereby improving its overall solvency position.
Overall, based on the solvency ratios analyzed, Pure Storage Inc demonstrates a solid financial position with low debt levels and a healthy capital structure, suggesting a strong ability to meet its long-term financial obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Pure Storage Inc's interest coverage ratio has experienced fluctuations over the past few years, indicating varying levels of the company's ability to meet its interest obligations. The interest coverage ratio measures the company's ability to pay interest on outstanding debt with its operating income.
On February 6, 2022, the interest coverage ratio was remarkably low at 0.27, implying that Pure Storage Inc had minimal earnings available to cover its interest expenses. Subsequently, there was a gradual improvement in the ratio, reaching 1.80 by May 8, 2022 and further increasing to 36.10 by February 5, 2023. This significant improvement suggests that the company's operating income was able to cover its interest payments over 36 times.
However, the ratio experienced a decline thereafter, dropping to 3.85 by October 31, 2023, which indicates a lower ability to cover interest expenses compared to the earlier period. The interest coverage ratio fluctuated in the following periods, showing values ranging from 5.69 to 28.36, reflecting changes in the company's earnings and interest obligations.
Overall, Pure Storage Inc's interest coverage ratio has displayed variability, with periods of both strong and weak coverage. Investors and creditors should closely monitor these fluctuations to assess the company's financial health and its ability to meet debt obligations.