NetApp Inc (NTAP)
Cash conversion cycle
| Apr 30, 2024 | Apr 26, 2024 | Apr 30, 2023 | Apr 28, 2023 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 37.00 | 15.86 | 28.31 | 13.15 | 35.49 |
| Days of sales outstanding (DSO) | days | — | 59.24 | — | 57.23 | — |
| Number of days of payables | days | — | 44.09 | — | 30.86 | — |
| Cash conversion cycle | days | 37.00 | 31.02 | 28.31 | 39.51 | 35.49 |
April 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 37.00 + — – —
= 37.00
The cash conversion cycle of NetApp Inc has shown some fluctuations over the years. In April 2022, the company's cash conversion cycle was 35.49 days, indicating that it took approximately 35.49 days for NetApp to convert its investments in inventory and other resources into cash flow from sales.
By April 2023, the cash conversion cycle had increased to 39.51 days, suggesting that NetApp took slightly longer to convert its investments into cash during that period. However, in the same year, by April 30, 2023, the company managed to improve its cash conversion cycle significantly to 28.31 days, indicating a more efficient conversion process.
In April 2024, the cash conversion cycle increased slightly to 31.02 days, showing a moderate increase in the time taken to convert investments into cash compared to the previous year. By the end of April 30, 2024, the cycle had further increased to 37.00 days, suggesting a lengthier process of converting investments into cash flow.
Overall, NetApp Inc's cash conversion cycle has shown some variability, with fluctuations in efficiency in converting investments into cash flow over the given period. It is important for the company to monitor and manage its cash conversion cycle effectively to improve its liquidity and operational efficiency.
Peer comparison
Apr 30, 2024