NetApp Inc (NTAP)
Cash conversion cycle
| Apr 30, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 34.66 | 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 |
| Days of sales outstanding (DSO) | days | 69.20 | 50.37 | 48.89 | 38.33 | 56.43 | 57.35 | 45.57 | 46.86 | 48.22 | 48.07 | 39.76 | 39.15 | 58.27 | 57.51 | 47.23 | 46.74 | 51.30 | 51.15 | 48.50 | 48.34 |
| Number of days of payables | days | 95.21 | 82.59 | 80.34 | 64.03 | 61.81 | 62.76 | 49.47 | 49.79 | 50.53 | 49.62 | 40.40 | 39.27 | 43.80 | 42.88 | 46.42 | 46.13 | 62.11 | 61.77 | 53.72 | 53.80 |
| Cash conversion cycle | days | 8.65 | 18.78 | 14.52 | 5.65 | 16.85 | 17.17 | 12.46 | 13.54 | 12.69 | 13.17 | 14.75 | 14.83 | 33.14 | 32.90 | 19.61 | 19.30 | 15.14 | 15.19 | 18.98 | 18.77 |
April 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 34.66 + 69.20 – 95.21
= 8.65
NetApp Inc's cash conversion cycle has shown fluctuations over the periods provided in the dataset. The cash conversion cycle is a measure of how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From July 29, 2022, to January 31, 2025, the cash conversion cycle for NetApp Inc varied from a high of 33.14 days in April 30, 2023, to a low of 5.65 days in July 31, 2024. A lower cash conversion cycle indicates that the company is able to quickly convert its investments into cash, which is generally considered favorable.
NetApp Inc experienced a significant decrease in its cash conversion cycle between October 27, 2023, and October 31, 2024, suggesting an improvement in efficiency in managing its working capital. However, there was an increase in the cash conversion cycle in January 27, 2023, and January 31, 2023, which may warrant further investigation into the company's operational and financial activities during that period.
Overall, fluctuations in the cash conversion cycle can provide insights into the effectiveness of NetApp Inc's inventory management, accounts receivable collection, and accounts payable processes. Further analysis and comparison with industry benchmarks could help in better understanding the company's working capital efficiency.
Peer comparison
Apr 30, 2025