NetApp Inc (NTAP)
Activity ratios
Short-term
Turnover ratios
| 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 | Apr 30, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 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 | 16.79 |
| Receivables turnover | — | — | — | — | 6.36 | — | 7.79 | — | 7.59 | — | 9.32 | — | 6.35 | — | 7.81 | — | 7.14 | — | 7.55 | — |
| Payables turnover | — | — | — | — | 5.82 | — | 7.33 | — | 7.36 | — | 9.29 | — | 8.51 | — | 7.91 | — | 5.91 | — | 6.78 | — |
| Working capital turnover | — | — | — | 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 | 3.43 |
NetApp Inc's inventory turnover has shown fluctuations over the periods provided, ranging from a low of 7.94 to a high of 24.78. Generally, the inventory turnover improved up to July 31, 2023, before declining thereafter. The company's ability to manage its inventory efficiently has varied over time.
In terms of receivables turnover, the data is sporadic with values available for certain periods only, ranging from 6.35 to 9.32. This indicates that NetApp Inc varies in its ability to collect outstanding receivables on an efficient basis. The absence of data for some periods hinders a comprehensive trend analysis in this area.
Regarding payables turnover, the company recorded values ranging from 5.82 to 9.29. Similar to receivables turnover, the data is not consistently available, making it challenging to derive a conclusive trend. However, the values suggest that NetApp Inc manages its payables effectively to some extent.
The working capital turnover ratio shows a positive trend for NetApp Inc, improving from 3.43 to 22.91, then declining slightly in the most recent periods. This increasing trend indicates that the company is generating more revenue from its working capital, showing improved efficiency in this aspect over time.
In general, NetApp Inc's activity ratios reflect fluctuations and varying levels of efficiency in managing its inventory, receivables, payables, and working capital. Monitoring these ratios consistently can provide insights into the company's operational performance and financial health.
Average number of days
| 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 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 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 | 21.74 |
| Days of sales outstanding (DSO) | days | — | — | — | — | 57.35 | — | 46.86 | — | 48.07 | — | 39.15 | — | 57.51 | — | 46.74 | — | 51.15 | — | 48.34 | — |
| Number of days of payables | days | — | — | — | — | 62.76 | — | 49.79 | — | 49.62 | — | 39.27 | — | 42.88 | — | 46.13 | — | 61.77 | — | 53.80 | — |
The activity ratios provide insights into how efficiently NetApp Inc manages its inventory, receivables, and payables.
1. Days of Inventory on Hand (DOH):
- NetApp's average days of inventory on hand have been fluctuating over the periods analyzed. The company held inventory for around 21-26 days from April 2022 to October 2024. However, there was a significant increase in inventory days by January 2025 to 51 days. This may indicate slower inventory turnover or excess inventory levels, which can tie up working capital.
2. Days of Sales Outstanding (DSO):
- NetApp's days of sales outstanding also varied during the periods. DSO ranged from approximately 39 days to 57 days. Notably, DSO was highest in April 2023 and April 2024. A lower DSO indicates faster collection of accounts receivable, whereas a higher DSO can suggest delays in receiving payments from customers.
3. Number of Days of Payables:
- The number of days of payables for NetApp ranged from around 40 to 63 days. It appears that the company took longer to pay its payables in April 2024. Generally, a longer period of payables may indicate better cash flow management, as the company can hold onto cash longer before paying suppliers.
Overall, the analysis of these activity ratios indicates that NetApp has experienced fluctuations in managing its inventory, receivables, and payables efficiency over the periods studied. The company should monitor these ratios to ensure optimal working capital management and operational efficiency.
Long-term
| 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 | Apr 30, 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 | 10.89 |
| Total asset turnover | 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 | 0.65 |
NetApp Inc's long-term activity ratios provide insights into the efficiency of the company in managing its fixed and total assets to generate revenue.
1. Fixed Asset Turnover: NetApp Inc's fixed asset turnover ratio has shown fluctuations over the periods analyzed. The ratio ranged from a high of 10.89 to a low of 6.58. Generally, a higher fixed asset turnover indicates that the company is effectively utilizing its fixed assets to generate sales. However, the decreasing trend observed in the latter periods may indicate potential inefficiencies in asset utilization or changes in the company's business operations.
2. Total Asset Turnover: The total asset turnover ratio for NetApp Inc also exhibited fluctuations but remained relatively stable over the periods analyzed. The ratio ranged from 0.63 to 0.72. A higher total asset turnover ratio suggests that the company is efficiently using its total assets to generate revenue. The slight increase in the ratio towards the latter periods may indicate improved efficiency in utilizing assets to drive sales.
Overall, a comprehensive analysis of NetApp Inc's long-term activity ratios indicates the need for further investigation into the factors influencing the fluctuations observed in both fixed asset turnover and total asset turnover ratios.