NetApp Inc (NTAP)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,204,000 | 6,117,000 | 6,038,000 | 6,137,000 | 6,295,000 | 6,392,000 | 6,477,000 | 6,379,000 | 6,245,000 | 6,119,000 | 5,975,000 | 5,825,000 | 5,670,000 | 5,521,000 | 5,460,000 | 5,421,000 | 5,357,000 | 5,548,000 | 5,705,000 | 5,849,000 |
| Total current assets | US$ in thousands | 4,897,000 | 4,327,000 | 3,993,000 | 4,160,000 | 4,680,000 | 4,540,000 | 4,603,000 | 4,922,000 | 5,945,000 | 5,513,000 | 5,669,000 | 5,631,000 | 6,001,000 | 5,114,000 | 4,821,000 | 4,817,000 | 4,274,000 | 4,218,000 | 4,191,000 | 4,516,000 |
| Total current liabilities | US$ in thousands | 4,106,000 | 3,765,000 | 3,733,000 | 3,249,000 | 3,467,000 | 3,393,000 | 3,395,000 | 3,575,000 | 3,953,000 | 3,552,000 | 3,195,000 | 3,103,000 | 3,452,000 | 3,050,000 | 2,920,000 | 2,976,000 | 3,616,000 | 3,529,000 | 3,204,000 | 3,175,000 |
| Working capital turnover | 7.84 | 10.88 | 23.22 | 6.74 | 5.19 | 5.57 | 5.36 | 4.74 | 3.14 | 3.12 | 2.42 | 2.30 | 2.22 | 2.67 | 2.87 | 2.94 | 8.14 | 8.05 | 5.78 | 4.36 |
April 26, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,204,000K ÷ ($4,897,000K – $4,106,000K)
= 7.84
The working capital turnover ratio for NetApp Inc has fluctuated over the past 20 quarters, indicating variations in the efficiency of the company in managing its working capital. The ratio measures how efficiently the company is utilizing its working capital to generate revenue.
From the data provided, it can be observed that the working capital turnover ratio ranged from a low of 2.22 in Jan 29, 2021, to a high of 23.22 in Oct 27, 2023. This wide range suggests significant fluctuations in the company's efficiency in the utilization of its working capital during this period.
The company experienced a noticeable increase in efficiency in managing working capital from Jan 29, 2021, to Oct 27, 2023, as the ratio significantly improved from 2.22 to 23.22. However, there was a subsequent decrease in efficiency in the following quarters, with the ratio falling to 3.14 in Apr 29, 2022, before gradually recovering.
Overall, the working capital turnover ratio for NetApp Inc has shown both peaks and troughs, indicating fluctuations in the company's ability to efficiently convert its working capital into revenue. The company may benefit from focusing on optimizing its working capital management to achieve more consistent performance in this area.
Peer comparison
Apr 26, 2024