NetApp Inc (NTAP)
Liquidity ratios
| Apr 30, 2025 | Apr 30, 2024 | Apr 26, 2024 | Apr 30, 2023 | Apr 28, 2023 | |
|---|---|---|---|---|---|
| Current ratio | 1.26 | 1.19 | 1.19 | 1.35 | 1.35 |
| Quick ratio | 1.09 | 1.04 | 1.04 | 1.17 | 1.17 |
| Cash ratio | 0.82 | 0.79 | 0.79 | 0.89 | 0.89 |
NetApp Inc's liquidity ratios, as indicated by the current ratio, quick ratio, and cash ratio, suggest the company's ability to meet its short-term obligations.
The current ratio remained relatively stable around 1.35 in April 2023 and 2024 but saw a slight decrease to 1.19 by April 2025. This indicates that NetApp has $1.19 in current assets for every dollar of current liabilities in 2025, compared to $1.35 in 2023 and 2024.
Similarly, the quick ratio also exhibited a consistent trend, staying around 1.17 in April 2023 and 2024 before slightly dropping to 1.09 by April 2025. The quick ratio accounts for more immediate liquidity by excluding inventory from current assets.
Lastly, the cash ratio, which measures the proportion of cash and cash equivalents to current liabilities, declined from 0.89 in April 2023 to 0.82 in April 2025. This suggests a slight reduction in NetApp's cash position relative to its short-term obligations over the years.
Overall, NetApp Inc's liquidity position, as reflected in these ratios, indicates a reasonable ability to meet its short-term financial obligations, with a minor downward trend in liquidity ratios over the years.
Additional liquidity measure
| Apr 30, 2025 | Apr 30, 2024 | Apr 26, 2024 | Apr 30, 2023 | Apr 28, 2023 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 8.65 | -7.20 | 31.02 | 18.48 | 39.51 |
The cash conversion cycle for NetApp Inc has shown fluctuations over the years, indicating changes in the efficiency of its cash management processes.
On April 28, 2023, the cash conversion cycle was 39.51 days, reflecting a relatively lengthy period for NetApp to convert its investments in inventory and accounts receivable into cash.
By April 30, 2023, NetApp managed to improve its cash conversion cycle to 18.48 days, indicating a more efficient management of its working capital.
On April 26, 2024, the cash conversion cycle increased to 31.02 days, suggesting a potential delay in converting investments back into cash compared to the previous period.
By April 30, 2024, NetApp recorded a negative cash conversion cycle of -7.20 days, implying that the company was able to convert its investments into cash before paying off its accounts payable.
As of April 30, 2025, the cash conversion cycle improved to 8.65 days, indicating that NetApp has efficiently managed its working capital during this period.
Overall, fluctuations in the cash conversion cycle suggest that NetApp has made efforts to streamline its cash management processes and optimize its working capital efficiency.