NetApp Inc (NTAP)
Cash conversion cycle
| Apr 30, 2025 | Apr 30, 2024 | Apr 26, 2024 | Apr 30, 2023 | Apr 28, 2023 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 34.66 | 37.00 | 15.86 | 28.31 | 13.15 |
| Days of sales outstanding (DSO) | days | 69.20 | 58.64 | 59.24 | 56.63 | 57.23 |
| Number of days of payables | days | 95.21 | 102.84 | 44.09 | 66.46 | 30.86 |
| Cash conversion cycle | days | 8.65 | -7.20 | 31.02 | 18.48 | 39.51 |
April 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 34.66 + 69.20 – 95.21
= 8.65
The cash conversion cycle for NetApp Inc has shown some fluctuations over the years. As of April 28, 2023, the cycle was 39.51 days, indicating that it took the company approximately 39.51 days to convert its investments in inventory and other resources into cash. By April 30, 2023, there was a significant improvement with the cycle decreasing to 18.48 days, suggesting more efficient management of cash flows and working capital.
However, by April 26, 2024, the cash conversion cycle increased to 31.02 days, signifying a longer period required to turn resources into cash. The trend reversed dramatically by April 30, 2024, where the cycle was reported as -7.20 days, which could potentially indicate a temporary situation where the company was able to convert its investments into cash at a quicker pace than incurring payables.
Moving forward to April 30, 2025, the cash conversion cycle improved to 8.65 days, signaling a more efficient working capital management compared to the previous year. Overall, fluctuations in the cash conversion cycle demonstrate the company's ability to effectively manage its inventory, accounts receivable, and accounts payable, impacting its liquidity and operational efficiency.
Peer comparison
Apr 30, 2025