NetApp Inc (NTAP)
Profitability ratios
Return on sales
| Apr 30, 2025 | Apr 30, 2024 | Apr 26, 2024 | Apr 30, 2023 | Apr 28, 2023 | |
|---|---|---|---|---|---|
| Gross profit margin | 70.19% | 70.72% | 71.45% | 66.16% | 66.86% |
| Operating profit margin | 20.34% | 19.37% | 19.57% | 16.00% | 16.17% |
| Pretax margin | 21.04% | 20.15% | 20.36% | 16.76% | 16.93% |
| Net profit margin | 18.05% | 15.73% | 15.89% | 20.03% | 20.24% |
NetApp Inc has shown strong profitability ratios over the years. The gross profit margin has remained consistently high, ranging from 66.16% to 71.45% over the analyzed periods, indicating efficient cost management.
Operating profit margin has shown a steady increase, with figures ranging from 16.00% to 20.34%. This signifies that the company has been able to control its operating expenses effectively while generating higher revenues.
The pretax margin has also shown a positive trend, increasing from 16.76% to 21.04%. This indicates that NetApp Inc has been able to improve its profitability before accounting for taxes over the analyzed periods.
Net profit margin, while fluctuating slightly, has generally remained at healthy levels, ranging from 15.73% to 20.24%. This suggests that the company has been successful in generating profits after accounting for all expenses, including taxes.
Overall, NetApp Inc's profitability ratios reflect its ability to generate strong profits relative to its revenue and effectively manage its costs, signaling good financial health and operational efficiency.
Return on investment
| Apr 30, 2025 | Apr 30, 2024 | Apr 26, 2024 | Apr 30, 2023 | Apr 28, 2023 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.35% | 12.28% | 12.28% | 10.37% | 10.37% |
| Return on assets (ROA) | 10.96% | 9.97% | 9.97% | 12.98% | 12.98% |
| Return on total capital | 0.00% | 115.79% | 42.29% | 97.76% | 31.93% |
| Return on equity (ROE) | 114.04% | 86.04% | 86.04% | 109.92% | 109.92% |
NetApp Inc's profitability ratios show a mixed performance over the period provided.
1. Operating return on assets (Operating ROA) remained relatively stable at around 10.37% in April 2023 and 2024, but showed an improvement to 12.28% in April 2024 and a further increase to 12.35% in April 2025. This indicates the company's ability to generate operating profits from its assets has been strengthening.
2. Return on assets (ROA) declined from 12.98% in April 2023 to 9.97% in April 2024 before showing a slight recovery to 10.96% in April 2025. The decrease in ROA suggests that NetApp Inc's overall profit generation from its assets has been impacted negatively during the period, but the slight improvement in April 2025 is a positive sign.
3. Return on total capital experienced significant fluctuations ranging from 31.93% in April 2023 to as high as 115.79% in April 2024, before dropping to 0.00% in April 2025. The volatile nature of this ratio may indicate variations in the company's capital structure and its impact on profitability.
4. Return on equity (ROE) maintained a high level above 100% in April 2023 and 2024, indicating strong returns to equity holders. However, there was a decrease to 86.04% in April 2024, followed by an increase to 114.04% in April 2025. The fluctuations in ROE suggest varying levels of profitability that shareholders are receiving.
In summary, while NetApp Inc's Operating ROA and ROE demonstrate consistent or improving profitability, the ROA and Return on total capital show more variability. It is important for investors and stakeholders to consider the overall trend and sustainability of the company's profitability based on these ratios.