NetApp Inc (NTAP)
Profitability ratios
Return on sales
| Apr 30, 2024 | Apr 26, 2024 | Apr 30, 2023 | Apr 28, 2023 | Apr 30, 2022 | |
|---|---|---|---|---|---|
| Gross profit margin | 70.72% | 71.45% | 66.16% | 66.86% | 66.79% |
| Operating profit margin | 19.37% | 19.57% | 16.00% | 16.17% | 18.31% |
| Pretax margin | 20.15% | 20.36% | 16.76% | 16.93% | 17.33% |
| Net profit margin | 15.73% | 15.89% | 20.03% | 20.24% | 14.83% |
NetApp Inc's profitability ratios have shown variations over the years. The gross profit margin has generally remained high, ranging from 66.16% to 71.45% during the period under review, indicating efficient cost management in generating revenue.
The operating profit margin has fluctuated between 16.00% and 19.57%, with a slight increase in recent years, implying effective control over operating expenses and improved operational efficiency.
The pretax margin has also demonstrated variability, ranging from 16.76% to 20.36%, showing fluctuations in the company's ability to generate profits before accounting for taxes, with a notable increase in profitability in the most recent year.
However, the net profit margin has shown some inconsistency, with values between 15.73% and 20.24%, indicating fluctuations in the company's bottom-line profitability after accounting for all expenses, including taxes.
Overall, NetApp Inc has maintained relatively healthy profitability margins, with some variability in recent years that may require further monitoring to assess the company's overall financial health and performance.
Return on investment
| Apr 30, 2024 | Apr 26, 2024 | Apr 30, 2023 | Apr 28, 2023 | Apr 30, 2022 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.28% | 12.28% | 10.37% | 10.37% | 11.54% |
| Return on assets (ROA) | 9.97% | 9.97% | 12.98% | 12.98% | 9.35% |
| Return on total capital | 115.79% | 42.29% | 97.76% | 31.93% | 133.05% |
| Return on equity (ROE) | 86.04% | 86.04% | 109.92% | 109.92% | 111.81% |
NetApp Inc's profitability ratios show a generally positive trend over the given periods.
- Operating return on assets (Operating ROA) indicates the company's ability to generate operating income from its assets. It remained relatively stable between 10.37% and 12.28% over the period.
- Return on assets (ROA) reflects the company's overall profitability in generating earnings from its assets. Although it fluctuated slightly, it ranged between 9.35% and 12.98%.
- Return on total capital measures how effectively the company generates profits from its total capital employed. The ratio varied significantly from 31.93% to 133.05%, with a notable decrease in 2024 to 42.29%.
- Return on equity (ROE) evaluates the company's profitability in relation to shareholders' equity. The ROE figures remained relatively stable around 86-111% range, indicating the company's ability to generate returns for its shareholders.
In summary, NetApp Inc's profitability ratios demonstrate consistent performance in generating returns from its assets and equity, with some fluctuations in the return on total capital. Continued monitoring of these ratios will be important to assess the company's financial health and operational efficiency.