NetApp Inc (NTAP)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.93 | 0.91 | 0.96 | 1.18 | 1.19 | 1.15 | 1.15 | 1.07 | 1.07 | 1.28 | 1.28 | 1.35 | 1.35 | 1.34 | 1.34 | 1.36 | 1.36 | 1.38 | 1.38 | 1.48 |
| Quick ratio | 0.54 | 0.51 | 0.67 | 0.79 | 1.04 | 0.77 | 0.98 | 0.89 | 0.91 | 1.21 | 1.12 | 0.89 | 1.17 | 0.93 | 1.17 | 0.89 | 1.16 | 1.00 | 1.20 | 1.05 |
| Cash ratio | 0.54 | 0.51 | 0.67 | 0.79 | 0.79 | 0.77 | 0.77 | 0.89 | 0.70 | 1.21 | 0.92 | 0.89 | 0.89 | 0.93 | 0.93 | 0.89 | 0.89 | 1.00 | 0.96 | 1.05 |
NetApp Inc's liquidity ratios show a fluctuating trend over the past few quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has generally been above 1, indicating the company has enough current assets to meet its current liabilities. However, there has been a slight decline in the current ratio from around 1.48 in April 2022 to 0.93 in January 2025. This downward trend may indicate a potential risk in the company's ability to meet its short-term obligations in the future.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has shown more variability compared to the current ratio. The quick ratio has fluctuated between 0.51 and 1.21 over the quarters, reflecting changes in the company's ability to meet its short-term liabilities without relying on inventory. The decreasing trend in the quick ratio towards the end of the period suggests a potential liquidity challenge for NetApp Inc in the near term.
The cash ratio, which is the most stringent measure of liquidity as it only includes cash and cash equivalents, has also shown fluctuations over the quarters. While the cash ratio has generally been above 0.5, indicating a solid cash position, it decreased to 0.54 by January 2025. This decrease might raise concerns about the company's ability to cover its short-term liabilities solely with cash and cash equivalents.
Overall, NetApp Inc's liquidity ratios point towards a mixed picture, with a generally adequate ability to cover short-term obligations but with some indications of weakening liquidity in recent quarters. Investors and stakeholders should monitor these ratios closely to assess the company's ongoing liquidity position.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle for NetApp Inc fluctuated over the period from April 30, 2022, to January 31, 2025. The cycle started at 21.74 days in April 2022, decreased to a low of 13.17 days in October 2023, and then began to increase again to 51.00 days by January 2025.
A shorter cash conversion cycle indicates that the company is efficiently managing its working capital, converting inventory into cash quickly. Conversely, a longer cycle suggests potential inefficiencies in managing accounts receivable, inventory, and accounts payable.
Throughout the period, NetApp Inc experienced varying levels of efficiency in converting resources into cash. Analyzing the trend of the cash conversion cycle over time can help evaluate the company's liquidity, operational efficiency, and potential cash flow challenges.