NetApp Inc (NTAP)
Debt-to-assets ratio
| Apr 26, 2024 | Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,992,000 | 2,389,000 | 2,386,000 | 2,632,000 | 1,146,000 |
| Total assets | US$ in thousands | 9,887,000 | 9,818,000 | 10,026,000 | 9,360,000 | 7,522,000 |
| Debt-to-assets ratio | 0.20 | 0.24 | 0.24 | 0.28 | 0.15 |
April 26, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,992,000K ÷ $9,887,000K
= 0.20
The debt-to-assets ratio of NetApp Inc has exhibited a mixed trend over the past five years. In April 2024, the ratio decreased to 0.20 from 0.24 in the previous year, indicating that the company has reduced its reliance on debt to finance its assets. This could be a positive sign as lower debt levels relative to total assets suggest a healthier financial position and lower financial risk.
Comparing the most recent ratio to that of five years ago, there has been a notable improvement from 0.15 to 0.20. This indicates that NetApp Inc has become more efficient in managing its debt levels in relation to its total assets over this period.
However, it is important to note that the ratio was at its peak in April 2021 at 0.28. This increase may have raised concerns about the company's debt burden and potential risks associated with high leverage. The subsequent decrease in the ratio in the following years may reflect management's efforts to address these concerns and strengthen the company's financial health.
Overall, the decreasing trend in NetApp Inc's debt-to-assets ratio over the past five years suggests that the company has been gradually improving its debt management and financial stability. This trend could be seen as a positive indicator of the company's ability to effectively utilize its assets and manage its debt levels responsibly.
Peer comparison
Apr 26, 2024