NetApp Inc (NTAP)

Liquidity ratios

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
Current ratio 1.19 1.15 1.07 1.28 1.35 1.34 1.36 1.38 1.50 1.55 1.77 1.81 1.74 1.68 1.65 1.62 1.18 1.20 1.31 1.42
Quick ratio 1.04 0.98 0.91 1.12 1.17 1.17 1.16 1.20 1.36 1.41 1.63 1.68 1.61 1.54 1.52 1.47 1.07 1.09 1.18 1.28
Cash ratio 0.79 0.77 0.70 0.92 0.89 0.93 0.89 0.96 1.05 1.18 1.42 1.47 1.33 1.28 1.25 1.27 0.80 0.85 0.93 1.11

NetApp Inc's liquidity ratios have shown some fluctuations over the past several 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 that NetApp has had sufficient current assets to meet its short-term liabilities. However, there has been a slight decline in the current ratio over the past few quarters, which may indicate a tighter liquidity position.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown a decreasing trend but has generally remained above 1. This suggests that NetApp has a reasonable ability to meet its short-term obligations without relying on inventory.

The cash ratio, which provides the most conservative measure of liquidity by only considering cash and cash equivalents, has shown some volatility but has generally been above 1. This indicates that NetApp has had a healthy cash position to cover its immediate liabilities.

Overall, NetApp's liquidity ratios demonstrate a generally stable liquidity position, with the current ratio, quick ratio, and cash ratio all indicating that the company has had sufficient liquidity to meet its short-term obligations over the analyzed periods. However, the decreasing trends in these ratios may warrant further monitoring to ensure that the company maintains a strong liquidity position in the future.


Additional liquidity measure

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
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

The cash conversion cycle of NetApp Inc has shown some fluctuations over the past several quarters. The cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

Looking at the trend, we can observe that the cash conversion cycle has ranged from a low of 7.26 days to a high of 39.16 days. Generally, a shorter cash conversion cycle is preferred as it indicates that the company is able to efficiently manage its working capital and turn its resources into cash quickly.

NetApp Inc experienced a significant decrease in its cash conversion cycle from 39.16 days in April 2023 to 15.49 days in October 2021. This improvement suggests that the company was able to streamline its operations, reduce inventory levels, and collect receivables more effectively during this period.

However, there was an increase in the cash conversion cycle from 15.49 days in October 2021 to 38.46 days in April 2022. This uptick may indicate that NetApp Inc faced challenges in managing its working capital efficiently, potentially due to changes in sales patterns or inventory management practices.

Overall, it is important for NetApp Inc to monitor its cash conversion cycle closely and strive to maintain a shorter cycle wherever possible to ensure effective management of working capital and maximize cash flow efficiency.