Pure Storage Inc (PSTG)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.03 | 0.03 | 0.03 | 0.00 | 0.00 | 0.00 | 0.00 | 0.25 | 0.27 | 0.28 | 0.28 | 0.27 | 0.28 | 0.00 | 0.00 | 0.20 | 0.21 | 0.22 | 0.22 | 0.23 |
| Debt-to-capital ratio | 0.07 | 0.08 | 0.09 | 0.00 | 0.00 | 0.00 | 0.00 | 0.51 | 0.52 | 0.52 | 0.52 | 0.50 | 0.50 | 0.00 | 0.00 | 0.36 | 0.38 | 0.39 | 0.38 | 0.38 |
| 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 |
| Financial leverage ratio | 2.88 | 2.92 | 3.18 | 3.76 | 3.87 | 4.01 | 3.89 | 4.16 | 3.94 | 3.99 | 3.77 | 3.76 | 3.61 | 3.11 | 2.98 | 2.85 | 2.82 | 2.87 | 2.78 | 2.67 |
Pure Storage Inc's solvency ratios show a consistent and strong financial position over the periods analyzed. The debt-to-assets ratio has remained low and stable around 0.03 to 0.03, indicating that the company has minimal debt in relation to its total assets.
Similarly, the debt-to-capital and debt-to-equity ratios have also been consistently low, ranging from 0.07 to 0.10 and 0.08 to 0.10, respectively. These ratios suggest that Pure Storage Inc relies significantly on equity financing rather than debt to fund its operations and investments, which is a positive sign for solvency.
The financial leverage ratio, which measures the degree of financial leverage in the company, has ranged from 2.67 to 4.16. While there is some fluctuation in this ratio, it generally indicates that the company has been efficiently using debt to finance its operations without overleveraging.
Overall, based on the solvency ratios analyzed, Pure Storage Inc appears to have a strong and stable financial position with low debt levels relative to its assets, capital, and equity.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 33.00 | 27.49 | 20.70 | 20.33 | 3.24 | 0.90 | -0.98 | -2.50 | -4.55 | -6.01 | -6.98 | -7.60 | -6.48 | -5.27 | -5.47 | -5.98 | -6.93 | -7.10 | -6.98 | -7.20 |
The interest coverage ratio for Pure Storage Inc has been fluctuating over the past few years, as indicated in the table. A higher interest coverage ratio signifies the company's ability to meet its interest obligations from its operating income.
From February 4, 2024, to August 7, 2020, the interest coverage ratio ranged from a positive 33.00 to a negative 5.27. This implies a significant variability in the company's ability to cover its interest expenses over this period.
The interest coverage ratio was particularly strong in early 2024 and November 2023, with ratios above 20, indicating a comfortable margin to cover interest payments. However, the ratios dipped significantly in February 2022 to August 2020, falling below zero at times. This suggests that the company may have struggled to generate sufficient operating income to cover its interest expenses during these periods.
Overall, Pure Storage Inc's interest coverage ratio shows a mixture of strong and weak performance in managing its interest obligations. Investors and creditors may closely monitor this ratio to assess the company's financial health and its ability to service its debt obligations in the future.