NetApp Inc (NTAP)
Current ratio
| Apr 26, 2024 | Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,897,000 | 4,680,000 | 5,945,000 | 6,001,000 | 4,274,000 |
| Total current liabilities | US$ in thousands | 4,106,000 | 3,467,000 | 3,953,000 | 3,452,000 | 3,616,000 |
| Current ratio | 1.19 | 1.35 | 1.50 | 1.74 | 1.18 |
April 26, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,897,000K ÷ $4,106,000K
= 1.19
The current ratio of NetApp Inc has shown fluctuation over the past five years, ranging from 1.18 to 1.74. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A higher current ratio is generally preferred as it indicates a stronger ability to cover short-term liabilities.
In 2021, NetApp Inc had a current ratio of 1.74, suggesting a strong liquidity position. However, this ratio decreased to 1.50 in 2022 and further to 1.35 in 2023, indicating a slight deterioration in liquidity over these years. The most recent data for 2024 shows a current ratio of 1.19, which is lower than the previous years and could potentially raise concerns about the company's ability to meet short-term obligations.
It is important to further investigate the factors contributing to this decline in the current ratio in recent years to assess the company's liquidity position accurately. Factors such as changes in current assets, current liabilities, or operational efficiency could be influencing the current ratio trend. Additional analysis of NetApp Inc's financial statements and industry comparatives would provide a more comprehensive understanding of its liquidity position.
Peer comparison
Apr 26, 2024