NetApp Inc (NTAP)

Short-term

Turnover ratios

Based on the data provided, let's analyze the activity ratios of NetApp Inc:

1. Inventory Turnover:
- The inventory turnover ratio for NetApp Inc has fluctuated over the years, indicating varying efficiency in managing its inventory.
- In April 2023, the company experienced a significant increase in inventory turnover, reaching 27.76 times, which suggests that NetApp was able to sell and replace its inventory more frequently.
- However, the ratio decreased to 9.87 in April 2024, indicating a potential slowdown in inventory movement.

2. Receivables Turnover:
- NetApp Inc had a receivables turnover ratio of 6.38 in April 2023, showing that the company collected its accounts receivable approximately 6.38 times during the year.
- The absence of receivables turnover data for other years limits a comprehensive analysis of the company's effectiveness in collecting outstanding payments.

3. Payables Turnover:
- The payables turnover ratio for NetApp Inc also lacks consistent data across the years, with a value of 11.83 in April 2023.
- A higher payables turnover ratio generally indicates that the company is paying its suppliers more frequently, which can be advantageous in managing cash flows efficiently.

4. Working Capital Turnover:
- NetApp's working capital turnover has shown an increasing trend from 3.17 in April 2022 to 7.92 in April 2024.
- A higher working capital turnover ratio reflects that the company is generating more revenue relative to its working capital, indicating effective utilization of resources to drive sales.

In conclusion, the analysis of NetApp Inc's activity ratios suggests fluctuations in inventory turnover and improvements in working capital turnover over the years. The absence of consistent data for receivables and payables turnover limits a comprehensive assessment of the company's efficiency in managing receivables and payables.

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Average number of days

NetApp Inc's activity ratios provide insights into how efficiently the company manages its assets and operations. Looking at the Days of Inventory on Hand (DOH), we observe a significant decrease from 35.49 days on April 30, 2022, to 13.15 days on April 28, 2023, indicating that the company was able to sell its inventory faster. However, there was a slight increase to 28.31 days on April 30, 2023, followed by another decrease to 15.86 days on April 26, 2024. The DOH increased to 37.00 days on April 30, 2024, suggesting that inventory turnover slightly slowed down.

Moving on to the Days of Sales Outstanding (DSO), we note that on April 28, 2023, the company took an average of 57.23 days to collect its receivables, which slightly increased to 59.24 days on April 26, 2024. DSO values for other periods were not available, making it difficult to determine any trends in collecting outstanding sales.

Regarding the Number of Days of Payables, NetApp Inc had figures of 30.86 days on April 28, 2023, and 44.09 days on April 26, 2024, showing that the company is taking longer to pay its payables. Data for other periods were not provided, limiting a comprehensive trend analysis of this ratio.

In conclusion, the company has shown improvements in managing inventory turnover but has experienced a slight delay in collecting receivables and an increase in the payment period for its payables. This analysis suggests that NetApp Inc may be striving for more efficient working capital management in the future.

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Long-term

NetApp Inc's long-term activity ratios provide insights into how efficiently the company is utilizing its fixed assets and total assets to generate sales revenues.

1. Fixed asset turnover:
- NetApp Inc's fixed asset turnover shows a decreasing trend from 10.50 in April 2022 to 9.68 in April 2023, before increasing slightly to 9.79 in April 2023, and further rising to 10.27 in April 2024.
- A higher fixed asset turnover ratio indicates that the company is effectively using its fixed assets to generate sales, which is favorable as it implies efficient asset utilization.
- The company's fixed asset turnover ratios above 9 suggest that NetApp Inc is successfully leveraging its fixed assets to drive sales growth over the given period.

2. Total asset turnover:
- NetApp Inc's total asset turnover remains relatively stable around 0.63, indicating that the company is consistently generating sales in relation to its total assets over the analyzed period.
- A total asset turnover ratio of 0.63 implies that for every dollar of total assets, NetApp Inc is generating $0.63 in sales.
- Although the total asset turnover ratio shows stability, it is essential to monitor any significant deviations or trends over time to assess the company's overall asset efficiency.

Overall, the analysis of NetApp Inc's long-term activity ratios suggests that the company is effectively utilizing its fixed assets and total assets to generate sales revenues, with a focus on maintaining or improving asset efficiency in the future.