NetApp Inc (NTAP)
Solvency ratios
| Apr 30, 2025 | Apr 30, 2024 | Apr 26, 2024 | Apr 30, 2023 | Apr 28, 2023 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.20 | 0.00 | 0.24 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.63 | 0.00 | 0.67 |
| Debt-to-equity ratio | 0.00 | 0.00 | 1.74 | 0.00 | 2.06 |
| Financial leverage ratio | 10.41 | 8.63 | 8.63 | 8.47 | 8.47 |
NetApp Inc's solvency ratios demonstrate a strong financial position with consistently low leverage and debt levels over the past few years. The Debt-to-assets ratio has been decreasing from 0.24 in April 2023 to 0.00 in April 2024 and 2025, indicating a decreasing reliance on debt to finance assets. The Debt-to-capital ratio also shows a similar trend, declining from 0.67 in April 2023 to 0.00 in April 2024 and 2025, reflecting a lower proportion of debt in the company's capital structure.
Furthermore, the Debt-to-equity ratio has also shown a decreasing pattern, moving from 2.06 in April 2023 to 0.00 in April 2024 and 2025, suggesting that the company has been reducing its debt relative to equity. The Financial leverage ratio has slightly increased from 8.47 in April 2023 to 10.41 in April 2025, indicating a higher reliance on debt to fund operations compared to equity.
Overall, NetApp Inc's solvency ratios indicate a healthy financial position with low debt levels, strong capital structure, and effective management of leverage, which are positive indicators of the company's ability to meet its financial obligations and sustain long-term growth.
Coverage ratios
| Apr 30, 2025 | Apr 30, 2024 | Apr 26, 2024 | Apr 30, 2023 | Apr 28, 2023 | |
|---|---|---|---|---|---|
| Interest coverage | 0.00 | 20.73 | 20.73 | 4.84 | 16.91 |
NetApp Inc's interest coverage ratio is used to assess the company's ability to meet its interest payment obligations. A higher ratio indicates a stronger ability to cover interest expenses with operating income.
Analyzing the interest coverage data provided:
1. As of April 28, 2023, NetApp Inc had an interest coverage ratio of 16.91, indicating the company could cover its interest payments nearly 17 times with its operating income.
2. By April 30, 2023, the interest coverage ratio dropped to 4.84, suggesting a decline in the company's ability to cover interest expenses.
3. However, by April 26, 2024, and April 30, 2024, the interest coverage ratio increased significantly to 20.73, signalling a notable improvement in the company's financial health.
4. Surprisingly, as of April 30, 2025, the interest coverage ratio plummeted to 0.00, indicating that NetApp Inc's operating income was insufficient to cover its interest expenses during that period.
In conclusion, the trend in NetApp Inc's interest coverage ratio fluctuates significantly over the period analyzed, displaying both strength and weakness in the company's ability to meet its interest payment obligations with operating income.