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Pure Storage (Pure Storage) Degree of Financial Leverage : -11.11 (As of Jan. 2024)


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What is Pure Storage Degree of Financial Leverage?

Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT). Pure Storage's Degree of Financial Leverage for the quarter that ended in Jan. 2024 was -11.11. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Pure Storage's Degree of Financial Leverage or its related term are showing as below:

PSTG's Degree of Financial Leverage is ranked better than
98.52% of 2437 companies
in the Hardware industry
Industry Median: 1 vs PSTG: -11.11

Pure Storage Degree of Financial Leverage Historical Data

The historical data trend for Pure Storage's Degree of Financial Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Pure Storage Degree of Financial Leverage Chart

Pure Storage Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.36 0.76 0.85 0.71 -11.11

Pure Storage Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Degree of Financial Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.71 0.42 -0.84 2.83 -11.11

Competitive Comparison of Pure Storage's Degree of Financial Leverage

For the Computer Hardware subindustry, Pure Storage's Degree of Financial Leverage, along with its competitors' market caps and Degree of Financial Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Pure Storage's Degree of Financial Leverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Pure Storage's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Pure Storage's Degree of Financial Leverage falls into.



Pure Storage Degree of Financial Leverage Calculation

Pure Storage's Degree of Financial Leverage for the quarter that ended in Jan. 2024 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 0.19 (Jan. 2024) / 0.23 (Jan. 2023) - 1 )/( 98.069 (Jan. 2024) / 96.557 (Jan. 2023) - 1 )
=-0.1739/0.0157
=-11.11***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EPS and EBIT was used to calculate Degree of Financial Leverage.
*** Please be aware that the Degree of Financial Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Pure Storage  (NYSE:PSTG) Degree of Financial Leverage Explanation

Degree of Financial Leverage (DFL) is a leverage ratio that measures the sensitivity of a company’s Earnings per Share (EPS) to fluctuations in its operating income, also referred to as Earnings Before Interest and Taxes (EBIT), resulting from adjustments in its capital structure. DFL is an essential tool for companies to assess the appropriate level of debt or financial leverage in their capital structure. When EBIT remains relatively stable, it results in stable earnings and earnings per share. In such cases, the company may consider taking on substantial debt. However, for companies operating in industries with significant fluctuations in EBIT, it is advisable to keep debt at a manageable level.

The higher Degree of Financial Leverage, the more volatile earnings will be. Because interest is a fixed expense, leverage can amplify earnings and EPS. This is beneficial when EBIT is growing, but it can become problematic in tough economic conditions when EBIT is under pressure.

Be Aware

The use of financial leverage varies across different industries and business sectors, and the application of Degree of Financial Leverage (DFL) should be adjusted accordingly.


Pure Storage Degree of Financial Leverage Related Terms

Thank you for viewing the detailed overview of Pure Storage's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Pure Storage (Pure Storage) Business Description

Industry
Traded in Other Exchanges
Address
650 Castro Street, Suite 400, Mountain View, CA, USA, 94041
Pure Storage Inc is a US-based company that provides an enterprise data storage platform that transforms business through a dramatic increase in performance and reduction in complexity and costs. It generates revenue from two sources: product revenue which includes the sale of integrated storage hardware and embedded operating system software and; subscription services revenue which includes Evergreen Storage subscriptions, a unified subscription which includes Pure as-a-Service, and Cloud Block Store, and Portworx. Subscription services revenue also includes professional services offerings such as installation and implementation consulting services.
Executives
P. Kevan Krysler officer: Chief Financial Officer 3401 HILLVIEW AVENUE, PALO ALTO CA 94304
Roxanne Taylor director PURE STORAGE, INC., 650 CASTRO ST #400, MOUNTAIN VIEW CA 94041
Gregory Tomb director 650 CASTRO ST, SUITE 400, MOUNTAIN VIEW CA 94041
Mona Chu officer: Chief Accounting Officer 650 CASTRO ST #400, MOUNTAIN VIEW CA 94041
Mallun Yen director 1 MARKET PLAZA, STEUART TOWER, SUITE 800, SAN FRANCISCO CA 94105
Brown Andrew William Fraser director C/O GUIDEWIRE SOFTWARE, INC., 970 PARK PL, SUITE 200, SAN MATEO CA 94403
John Francis Murphy director 2250 E. IMPERIAL HIGHWAY, EL SEGUNDO CA 90245
Dan Fitzsimons officer: Chief Revenue Officer C/O PURE STORAGE, INC., 650 CASTRO ST #400, MOUNTAIN VIEW CA 94041
Ajay Singh officer: Chief Product Officer PURE STORAGE, INC., 650 CASTRO ST #400, MOUNTAIN VIEW CA 94041
Anita M Sands director 350 ELLIS STREET, MOUNTAIN VIEW CA 94043
Scott Dietzen director, officer: Chief Executive Officer C/O PURE STORAGE, INC., 650 CASTRO STREET, SUITE 400, MOUNTAIN VIEW CA 94041
Paul S Mountford officer: Chief Operating Officer 950 WEST MAUDE AVE, SUNNYVALE CA 94085
Timothy Riitters officer: Chief Financial Officer C/O PURE STORAGE, INC., 650 CASTRO STREET, SUITE 400, MOUNTAIN VIEW CA 94041
Taylor Susan J.s. director C/O LINKEDIN CORPORATION, 2029 STIERLIN COURT, MOUNTAIN VIEW CA 94043
John Colgrove director, officer: Chief Technology Officer C/O PURE STORAGE, INC., 650 CASTRO STREET, SUITE 400, MOUNTAIN VIEW CA 94041