NetApp Inc (NTAP)
Cash conversion cycle
| Apr 26, 2024 | Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 15.86 | 13.15 | 16.64 | 9.92 | 13.74 |
| Days of sales outstanding (DSO) | days | 59.24 | 57.23 | 71.89 | 60.83 | 66.30 |
| Number of days of payables | days | 44.09 | 30.86 | 49.52 | 36.54 | 40.38 |
| Cash conversion cycle | days | 31.02 | 39.51 | 39.01 | 34.21 | 39.66 |
April 26, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 15.86 + 59.24 – 44.09
= 31.02
The cash conversion cycle of NetApp Inc has shown fluctuations over the past five years. In the most recent fiscal year (ending April 26, 2024), the company's cash conversion cycle was the shortest at 31.02 days, indicating a more efficient management of working capital compared to the previous years.
In the preceding fiscal years, NetApp Inc's cash conversion cycle was longer, ranging from 34.21 days in fiscal year 2021 to 39.66 days in fiscal year 2020. This suggests that the company took longer to convert its investments in inventory and accounts receivable into cash during those years, possibly due to factors such as slower inventory turnover or extended accounts receivable collection periods.
Overall, a decreasing trend in the cash conversion cycle indicates improved efficiency in managing working capital and converting assets into cash. NetApp Inc should continue to monitor and manage its cash conversion cycle effectively to optimize its liquidity and operational performance.
Peer comparison
Apr 26, 2024