NetApp Inc (NTAP)
Cash conversion cycle
| Apr 26, 2024 | Jan 26, 2024 | Oct 27, 2023 | Jul 28, 2023 | Apr 28, 2023 | Jan 27, 2023 | Oct 28, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 29, 2021 | Jul 30, 2021 | Apr 30, 2021 | Jan 29, 2021 | Oct 30, 2020 | Jul 31, 2020 | Apr 24, 2020 | Jan 24, 2020 | Oct 25, 2019 | Jul 26, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 16.24 | 11.44 | 10.32 | 10.72 | 13.41 | 13.72 | 19.37 | 18.78 | 16.92 | 14.24 | 13.45 | 9.44 | 10.11 | 12.72 | 14.29 | 17.47 | 18.74 | 10.44 | 9.93 | 10.09 |
| Days of sales outstanding (DSO) | days | 59.24 | 46.96 | 47.57 | 38.84 | 57.23 | 46.88 | 51.28 | 49.49 | 71.89 | 47.66 | 39.52 | 41.04 | 60.83 | 52.82 | 53.21 | 40.67 | 66.30 | 54.01 | 49.90 | 33.82 |
| Number of days of payables | days | 45.13 | 34.57 | 34.75 | 28.14 | 31.47 | 33.88 | 46.35 | 41.68 | 50.35 | 36.84 | 37.49 | 32.16 | 37.25 | 40.32 | 45.21 | 50.88 | 55.06 | 35.19 | 34.17 | 30.26 |
| Cash conversion cycle | days | 30.35 | 23.83 | 23.14 | 21.41 | 39.16 | 26.73 | 24.30 | 26.59 | 38.46 | 25.06 | 15.49 | 18.32 | 33.69 | 25.23 | 22.29 | 7.26 | 29.98 | 29.26 | 25.67 | 13.65 |
April 26, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 16.24 + 59.24 – 45.13
= 30.35
The cash conversion cycle of NetApp Inc has shown fluctuations over the past few quarters. The trend indicates that NetApp has experienced varying efficiency in managing its cash flows and working capital.
The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash from sales. A shorter cycle is typically preferred as it indicates faster turnover of assets and better liquidity management.
In the most recent quarter, the cash conversion cycle was 30.35 days, indicating that NetApp took approximately a month to convert its investments into cash. This was an increase from the previous quarter's cycle of 23.83 days.
Looking at the historical data, we can observe that the cash conversion cycle has been fluctuating between 7.26 days to 39.16 days over the past few years. The lowest cycle of 7.26 days was recorded in the third quarter of 2020, indicating a highly efficient cash conversion process, while the highest cycle of 39.16 days was observed in the second quarter of 2023, suggesting a slower conversion of assets into cash.
Overall, NetApp's cash conversion cycle demonstrates variability, and it is important for the company to focus on optimizing working capital management to improve efficiency and maintain healthy liquidity levels.
Peer comparison
Apr 26, 2024