NetApp Inc (NTAP)
Inventory turnover
| Apr 30, 2024 | Apr 26, 2024 | Apr 30, 2023 | Apr 28, 2023 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,835,000 | 4,280,000 | 2,153,000 | 4,636,000 | 2,098,000 |
| Inventory | US$ in thousands | 186,000 | 186,000 | 167,000 | 167,000 | 204,000 |
| Inventory turnover | 9.87 | 23.01 | 12.89 | 27.76 | 10.28 |
April 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,835,000K ÷ $186,000K
= 9.87
NetApp Inc's inventory turnover has shown fluctuating trends over the past few years, ranging from a low of 9.87 to a high of 27.76. The inventory turnover ratio indicates how efficiently the company manages its inventory levels by measuring the number of times inventory is sold and replaced within a given time period.
A higher inventory turnover ratio generally indicates better inventory management and suggests that the company is effectively selling its products. The significant increase in inventory turnover from 10.28 in April 2022 to 27.76 in April 28, 2023, followed by a decline to 12.89 in April 30, 2023, and then an increase to 23.01 in April 26, 2024, implies that NetApp has been improving its inventory management practices and selling inventory more rapidly.
However, the decrease in inventory turnover to 9.87 in April 30, 2024, may indicate potential issues such as overstocking, slow-moving inventory, or inefficiencies in sales processes. It is important for NetApp to closely monitor and analyze its inventory turnover to optimize inventory levels, minimize carrying costs, and improve overall operational efficiency.
Peer comparison
Apr 30, 2024