Gross Margin % is calculated as gross profit divided by its revenue. Pure Storage's Gross Profit for the
three
months ended in Jan. 2024 was $569 Mil. Pure Storage's Revenue for the
three
months ended in Jan. 2024 was $790 Mil. Therefore, Pure Storage's Gross Margin % for the quarter that ended in Jan. 2024 was 71.98%.
The historical rank and industry rank for Pure Storage's Gross Margin % or its related term are showing as below:
PSTG'
s Gross Margin % Range Over the Past 10 Years
Min: 55.55 Med: 66.94 Max: 71.41
Current: 71.41
During the past 11 years, the highestGross Margin % of Pure Storage was 71.41%. The lowest was 55.55%. And the median was 66.94%.
PSTG's Gross Margin % is ranked better than 97.25% of 2438
companies
in the Hardware industry
Industry Median: 24.5
vs PSTG: 71.41
Pure Storage had a gross margin of 71.98% for the quarter that ended in Jan. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Pure Storage was 1.00% per year.
Pure Storage Gross Margin % Historical Data
The historical data trend for Pure Storage's Gross Margin % 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.
Competitive Comparison of Pure Storage's Gross Margin %
For the Computer Hardware subindustry, Pure Storage's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Pure Storage's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Pure Storage's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Pure Storage (NYSE:PSTG) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Pure Storage had a gross margin of 71.98% for the quarter that ended in Jan. 2024 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Pure Storage Gross Margin % Related Terms
Thank you for viewing the detailed overview of Pure Storage's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
PSTG has been successfully added to your 