NetApp Inc (NTAP)
Activity ratios
Short-term
Turnover ratios
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Apr 26, 2024 | Jan 31, 2024 | Jan 26, 2024 | Oct 31, 2023 | Oct 27, 2023 | Jul 31, 2023 | Jul 28, 2023 | Apr 30, 2023 | Apr 28, 2023 | Jan 31, 2023 | Jan 27, 2023 | Oct 31, 2022 | Oct 28, 2022 | Jul 31, 2022 | Jul 29, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 10.53 | 7.16 | 7.94 | 11.64 | 16.41 | 16.17 | 22.31 | 22.16 | 24.34 | 24.78 | 23.73 | 24.40 | 19.56 | 19.98 | 19.41 | 19.53 | 14.07 | 14.14 | 15.08 | 15.06 |
| Receivables turnover | 5.27 | 7.25 | 7.47 | 9.52 | 6.47 | 6.36 | 8.01 | 7.79 | 7.57 | 7.59 | 9.18 | 9.32 | 6.26 | 6.35 | 7.73 | 7.81 | 7.12 | 7.14 | 7.53 | 7.55 |
| Payables turnover | 3.83 | 4.42 | 4.54 | 5.70 | 5.91 | 5.82 | 7.38 | 7.33 | 7.22 | 7.36 | 9.03 | 9.29 | 8.33 | 8.51 | 7.86 | 7.91 | 5.88 | 5.91 | 6.79 | 6.78 |
| Working capital turnover | 5.53 | — | — | — | 9.02 | 8.10 | 11.22 | 10.91 | 22.91 | 22.98 | 6.58 | 6.68 | 5.10 | 5.16 | 5.53 | 5.59 | 5.36 | 5.38 | 4.83 | 4.85 |
NetApp Inc's activity ratios show fluctuations over the observed period.
1. Inventory Turnover: The inventory turnover ratio improved steadily from July 2022 to July 2023, indicating efficient management of inventory. However, there was a steep decline in the ratio from July 2023 to April 2024, suggesting a possible buildup of inventory. Subsequently, there was a significant drop in the ratio from April 2024 to April 2025, indicating potential issues with inventory management or slower sales.
2. Receivables Turnover: The receivables turnover ratio showed some fluctuations, with periods of increase and decrease. A higher turnover ratio generally indicates that the company is collecting its accounts receivables more quickly. In this case, the ratio improved from April 2023 to July 2023, but deteriorated in the following periods, potentially signaling delays in collecting payments from customers.
3. Payables Turnover: The payables turnover ratio fluctuated as well, with a general decreasing trend. A lower turnover ratio could indicate that the company is taking more time to pay its suppliers. However, the ratio started to stabilize from January 2024 onwards, which may suggest a better-managed payable cycle.
4. Working Capital Turnover: The working capital turnover ratio experienced significant variations, with a peak in October 2023, followed by a sharp decline in January 2024. However, data is missing for working capital turnover from July 2024 onwards, making it difficult to analyze trends in the ratio.
Overall, fluctuations in these activity ratios may signal changes in NetApp Inc's operational efficiency and effectiveness in managing its resources. Further investigation into the reasons behind these fluctuations would be necessary to provide a comprehensive analysis of the company's performance in managing its assets and liabilities.
Average number of days
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Apr 26, 2024 | Jan 31, 2024 | Jan 26, 2024 | Oct 31, 2023 | Oct 27, 2023 | Jul 31, 2023 | Jul 28, 2023 | Apr 30, 2023 | Apr 28, 2023 | Jan 31, 2023 | Jan 27, 2023 | Oct 31, 2022 | Oct 28, 2022 | Jul 31, 2022 | Jul 29, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 34.66 | 51.00 | 45.97 | 31.36 | 22.24 | 22.58 | 16.36 | 16.47 | 15.00 | 14.73 | 15.38 | 14.96 | 18.66 | 18.27 | 18.80 | 18.69 | 25.95 | 25.81 | 24.20 | 24.24 |
| Days of sales outstanding (DSO) | days | 69.20 | 50.37 | 48.89 | 38.33 | 56.43 | 57.35 | 45.57 | 46.86 | 48.22 | 48.07 | 39.76 | 39.15 | 58.27 | 57.51 | 47.23 | 46.74 | 51.30 | 51.15 | 48.50 | 48.34 |
| Number of days of payables | days | 95.21 | 82.59 | 80.34 | 64.03 | 61.81 | 62.76 | 49.47 | 49.79 | 50.53 | 49.62 | 40.40 | 39.27 | 43.80 | 42.88 | 46.42 | 46.13 | 62.11 | 61.77 | 53.72 | 53.80 |
Based on the provided data for NetApp Inc, we can analyze the activity ratios as follows:
1. Days of Inventory on Hand (DOH):
- NetApp's DOH decreased from 24.24 days in July 2022 to 18.69 days in January 2023, indicating a more efficient management of inventory during that period.
- Subsequently, there was a slight increase in DOH to around 22 days by April 2024, followed by a significant jump to 51.00 days by January 2025.
- The increasing trend in DOH since April 2024 suggests that NetApp may be facing challenges in managing its inventory levels efficiently.
2. Days of Sales Outstanding (DSO):
- NetApp's DSO has shown some fluctuations over the periods analyzed, with peaks around 58 days in April 2023 and April 2024.
- However, there was a notable improvement in DSO to 38.33 days in July 2024, indicating a more efficient collection of receivables.
- The DSO increased to 69.20 days by April 2025, which might imply a slower collection of sales, potentially impacting the company's cash flow.
3. Number of Days of Payables:
- NetApp's payables period ranged from around 53 days in July 2022 to 95 days in April 2025.
- The increasing trend in payables days suggests that the company is taking longer to pay its suppliers over time, which could be a strategic move to manage cash flow.
- However, a significant increase in payables days could also indicate challenges in meeting financial obligations promptly.
In conclusion, NetApp's activity ratios highlight fluctuations in its inventory management, accounts receivable collection, and payables periods over the analyzed periods. The increasing trend in inventory days and payables days, along with fluctuations in receivables collection, may indicate potential challenges that require further investigation for improved working capital management and operational efficiency.
Long-term
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Apr 26, 2024 | Jan 31, 2024 | Jan 26, 2024 | Oct 31, 2023 | Oct 27, 2023 | Jul 31, 2023 | Jul 28, 2023 | Apr 30, 2023 | Apr 28, 2023 | Jan 31, 2023 | Jan 27, 2023 | Oct 31, 2022 | Oct 28, 2022 | Jul 31, 2022 | Jul 29, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 10.61 | — | 10.10 | — | 9.59 | 6.58 | 9.50 | 9.51 | 9.64 | 9.51 | 9.61 | 9.80 | 9.82 | 10.47 | 10.50 |
| Total asset turnover | 0.61 | 0.72 | 0.72 | 0.69 | 0.66 | 0.65 | 0.67 | 0.65 | 0.66 | 0.66 | 0.65 | 0.66 | 0.63 | 0.64 | 0.65 | 0.66 | 0.66 | 0.66 | 0.68 | 0.68 |
NetApp Inc's fixed asset turnover ratio, a measure of how efficiently the company is generating revenue from its fixed assets, fluctuated over the periods provided. The ratio ranged from a high of 10.61 in April 2024 to a low of 6.58 in July 2023. This indicates that, on average, NetApp Inc generated $9.76 in revenue for every dollar invested in fixed assets over the available periods.
On the other hand, NetApp Inc's total asset turnover ratio, which reflects how effectively the company is utilizing all its assets to generate revenue, also varied. The ratio ranged from 0.61 in April 2025 to 0.72 in January 2025 and October 2024. This suggests that, on average, the company generated $0.66 in revenue for every dollar of assets owned during the periods assessed.
Overall, the fixed asset turnover ratio indicates the efficiency of NetApp Inc in utilizing its fixed assets to generate sales, while the total asset turnover ratio provides insights into the overall asset efficiency of the company in generating revenue. Both ratios are essential in assessing the operational performance and asset utilization of NetApp Inc over time.