NetApp Inc (NTAP)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.26 | 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 |
| Quick ratio | 1.33 | 0.75 | 0.72 | 0.82 | 1.04 | 1.04 | 0.98 | 0.98 | 1.10 | 0.91 | 1.41 | 1.12 | 1.17 | 1.17 | 1.17 | 1.17 | 1.16 | 1.16 | 1.25 | 1.20 |
| Cash ratio | 1.06 | 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 |
NetApp Inc's liquidity ratios, which include the current ratio, quick ratio, and cash ratio, provide insights into the company's ability to meet its short-term obligations.
- The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has been gradually declining from 1.38 in July 2022 to 1.26 in July 2023. This indicates a decreasing ability to meet short-term obligations.
- The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown a downward trend from 1.25 in July 2022 to 0.82 in July 2024. This suggests a decreasing ability to quickly cover short-term liabilities without relying on inventory liquidation.
- The cash ratio, which highlights the proportion of current liabilities that can be covered by cash and cash equivalents, has fluctuated but generally trended downwards, indicating potential challenges in meeting short-term obligations with cash on hand alone.
Overall, the declining trend in these liquidity ratios for NetApp Inc raises concerns about the company's ability to efficiently manage its short-term financial obligations. It may indicate potential liquidity challenges that the company needs to address to ensure financial stability and operational continuity.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of NetApp Inc has shown varying trends over the periods provided. In general, the cash conversion cycle measures the time it takes for a company to convert its investments in inventory into cash flows from sales. A shorter cash conversion cycle is usually indicative of better efficiency in managing working capital.
From July 2022 to October 2023, NetApp Inc managed to reduce its cash conversion cycle from around 19 days to below 15 days, indicating an improvement in its efficiency in managing cash flows, inventory, and receivables during this period. The company's ability to collect payments quickly, manage inventory levels effectively, and optimize its payables contributed to this positive trend.
However, there was a significant increase in the cash conversion cycle in the following periods, particularly in April 2023 and January 2024, where the cycle exceeded 30 days, suggesting potential challenges in managing working capital during those periods. Subsequently, the company made improvements, as seen in July 2024, where the cash conversion cycle reduced significantly to just 5.65 days, reflecting enhanced efficiency in cash flow management.
By October 2024, the cash conversion cycle increased again to around 14.52 days, indicating some fluctuations in the company's working capital management. Lastly, in April 2025, there was a notable improvement as the cycle decreased to 8.65 days, suggesting that NetApp Inc had managed to enhance its cash flow efficiency once more.
Overall, NetApp Inc's cash conversion cycle has shown variability over the periods analyzed, with the company demonstrating efforts to optimize working capital management. Periods of both improvement and challenges were observed, highlighting the importance of maintaining effective cash flow and working capital strategies to sustain financial health and operational efficiency.