NetApp Inc (NTAP)
Cash conversion cycle
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Apr 26, 2024 | Jan 31, 2024 | Jan 26, 2024 | Oct 31, 2023 | Oct 27, 2023 | Jul 31, 2023 | Jul 28, 2023 | Apr 30, 2023 | Apr 28, 2023 | Jan 31, 2023 | Jan 27, 2023 | Oct 31, 2022 | Oct 28, 2022 | Jul 31, 2022 | Jul 29, 2022 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 51.00 | 45.97 | 31.36 | 22.24 | 22.58 | 16.36 | 16.47 | 15.00 | 14.73 | 15.38 | 14.96 | 18.66 | 18.27 | 18.80 | 18.69 | 25.95 | 25.81 | 24.20 | 24.24 | 21.74 |
| Days of sales outstanding (DSO) | days | — | — | — | — | 57.35 | — | 46.86 | — | 48.07 | — | 39.15 | — | 57.51 | — | 46.74 | — | 51.15 | — | 48.34 | — |
| Number of days of payables | days | — | — | — | — | 62.76 | — | 49.79 | — | 49.62 | — | 39.27 | — | 42.88 | — | 46.13 | — | 61.77 | — | 53.80 | — |
| Cash conversion cycle | days | 51.00 | 45.97 | 31.36 | 22.24 | 17.17 | 16.36 | 13.54 | 15.00 | 13.17 | 15.38 | 14.83 | 18.66 | 32.90 | 18.80 | 19.30 | 25.95 | 15.19 | 24.20 | 18.77 | 21.74 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 51.00 + — – —
= 51.00
NetApp Inc's cash conversion cycle, which represents the time it takes for the company to convert its resources invested in inventory and accounts receivable into cash inflows from sales, shows fluctuation over the analyzed periods.
The cash conversion cycle ranged from the lowest point of 13.17 days on October 27, 2023, to the highest point of 51.00 days on January 31, 2025. A lower cash conversion cycle indicates that the company is efficiently managing its working capital and generating cash from its operations more quickly.
It is noted that there are periods where the cash conversion cycle showed improvement, such as in July 28, 2023, with 14.83 days, and in October 27, 2023, with 13.17 days. These improvements demonstrate that NetApp Inc was able to effectively manage its inventory and accounts receivable during those periods.
However, on January 31, 2025, the cash conversion cycle significantly increased to 51.00 days, which may suggest potential inefficiencies in managing working capital or challenges in converting sales into cash during that period.
Overall, it is crucial for NetApp Inc to closely monitor and manage its cash conversion cycle to improve operational efficiency, optimize working capital, and ensure a healthy cash flow position.
Peer comparison
Jan 31, 2025