NetApp Inc (NTAP)
Liquidity ratios
| Apr 30, 2024 | Apr 26, 2024 | Apr 30, 2023 | Apr 28, 2023 | Apr 30, 2022 | |
|---|---|---|---|---|---|
| Current ratio | 1.19 | 1.19 | 1.35 | 1.35 | 1.50 |
| Quick ratio | 0.79 | 1.04 | 0.89 | 1.17 | 1.05 |
| Cash ratio | 0.79 | 0.79 | 0.89 | 0.89 | 1.05 |
NetApp Inc's current ratio has shown a declining trend from 1.50 in April 2022 to 1.19 in April 2024. This indicates that the company's ability to cover its short-term obligations with its current assets has weakened over time.
Similarly, the quick ratio has also decreased from 1.05 in April 2022 to 0.79 in April 2024, indicating a decrease in the company's ability to meet its immediate short-term liabilities with its most liquid assets.
The cash ratio has also followed a declining pattern from 1.05 in April 2022 to 0.79 in April 2024, signaling a reduced ability of the company to pay off its current liabilities using only its cash and cash equivalents.
Overall, the decreasing trend in all three liquidity ratios suggests that NetApp Inc may face challenges in meeting its short-term financial obligations in the future. The management should closely monitor these ratios and take appropriate measures to improve the company's liquidity position.
Additional liquidity measure
| Apr 30, 2024 | Apr 26, 2024 | Apr 30, 2023 | Apr 28, 2023 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 37.00 | 31.02 | 28.31 | 39.51 | 35.49 |
The cash conversion cycle of NetApp Inc has shown fluctuations over the past few years. As of April 30, 2022, the company's cash conversion cycle was 35.49 days, indicating that it takes approximately 35.49 days for NetApp to convert its investments in inventory and receivables into cash.
By April 28, 2023, the cash conversion cycle had extended to 39.51 days, suggesting a slight delay in the conversion of resources into cash. However, by April 30, 2023, there was a significant improvement in the cycle, reducing it to 28.31 days, indicating a more efficient cash management process.
As of April 26, 2024, NetApp's cash conversion cycle increased slightly to 31.02 days but still remained relatively efficient. By April 30, 2024, the cycle had increased further to 37.00 days, suggesting a longer period to convert investments into cash compared to the previous year.
Overall, NetApp's cash conversion cycle has shown some variability, but the company has generally managed to efficiently convert its investments into cash within a reasonable timeframe. Monitoring this metric can provide insights into the company's liquidity management and operational efficiency.