NetApp Inc (NTAP)
Quick ratio
| Apr 30, 2024 | Apr 26, 2024 | Apr 30, 2023 | Apr 28, 2023 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,903,000 | 1,903,000 | 2,316,000 | 2,316,000 | 4,134,000 |
| Short-term investments | US$ in thousands | 1,355,000 | 1,349,000 | 754,000 | 754,000 | 22,000 |
| Receivables | US$ in thousands | — | 1,007,000 | — | 987,000 | — |
| Total current liabilities | US$ in thousands | 4,106,000 | 4,106,000 | 3,467,000 | 3,467,000 | 3,953,000 |
| Quick ratio | 0.79 | 1.04 | 0.89 | 1.17 | 1.05 |
April 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,903,000K
+ $1,355,000K
+ $—K)
÷ $4,106,000K
= 0.79
NetApp Inc's quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, has shown some fluctuations over the past few years.
As of April 30, 2022, the quick ratio was 1.05, indicating that NetApp had just enough liquid assets to cover its current liabilities. By April 28, 2023, the ratio improved to 1.17, suggesting an enhanced liquidity position.
However, in the following period ending April 30, 2023, the quick ratio decreased to 0.89, falling below 1 and indicating potential difficulties in meeting short-term obligations solely with liquid assets.
The quick ratio then increased to 1.04 by April 26, 2024, showing a recovery in NetApp's liquidity position. Yet, by April 30, 2024, the ratio dropped to 0.79, signaling a decline in the company's ability to cover its short-term liabilities with its readily available assets.
Overall, the fluctuating trend in NetApp Inc's quick ratio highlights the importance of continuous monitoring of liquidity levels to ensure the company can meet its short-term financial obligations effectively.
Peer comparison
Apr 30, 2024