NetApp Inc (NTAP)
Days of sales outstanding (DSO)
| Apr 26, 2024 | Jan 26, 2024 | Oct 27, 2023 | Jul 28, 2023 | Apr 28, 2023 | Jan 27, 2023 | Oct 28, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 29, 2021 | Jul 30, 2021 | Apr 30, 2021 | Jan 29, 2021 | Oct 30, 2020 | Jul 31, 2020 | Apr 24, 2020 | Jan 24, 2020 | Oct 25, 2019 | Jul 26, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 6.16 | 7.77 | 7.67 | 9.40 | 6.38 | 7.79 | 7.12 | 7.37 | 5.08 | 7.66 | 9.23 | 8.89 | 6.00 | 6.91 | 6.86 | 8.98 | 5.51 | 6.76 | 7.31 | 10.79 | |
| DSO | days | 59.24 | 46.96 | 47.57 | 38.84 | 57.23 | 46.88 | 51.28 | 49.49 | 71.89 | 47.66 | 39.52 | 41.04 | 60.83 | 52.82 | 53.21 | 40.67 | 66.30 | 54.01 | 49.90 | 33.82 |
April 26, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.16
= 59.24
Days of Sales Outstanding (DSO) is a key financial ratio used to evaluate a company's efficiency in collecting accounts receivable. A lower DSO indicates faster collection of receivables, which is favorable as it implies better cash flow management and reduced credit risk.
Analyzing NetApp Inc's DSO over the past 20 quarters shows some fluctuations but trend towards improvement. The DSO ranged from a low of 33.82 days to a high of 71.89 days, with an average DSO of approximately 50 days. The DSO has exceeded 60 days in a few quarters, indicating delays in collecting accounts receivable during those periods.
In recent quarters, NetApp Inc has shown better management of its accounts receivable, with some quarters showing DSO below the average. This suggests that the company has been more efficient in collecting payments from customers, which bodes well for its cash flow position.
Overall, NetApp Inc's trend of decreasing DSO over time is a positive sign of its improved receivables management. However, it is essential for the company to continue monitoring and maintaining this metric to ensure a healthy cash flow and financial stability.
Peer comparison
Apr 26, 2024