NetApp Inc (NTAP)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,146,000 | 1,159,000 | 838,000 | 685,000 | 242,000 |
| Debt-to-capital ratio | 0.63 | 0.67 | 0.74 | 0.79 | 0.83 |
April 26, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,992,000K ÷ ($1,992,000K + $1,146,000K)
= 0.63
The debt-to-capital ratio for NetApp Inc has shown a decreasing trend over the past five years, indicating a lower reliance on debt financing relative to total capital.
In April 2020, the ratio stood at 0.83, reflecting that 83% of the company's capital structure was funded by debt. However, the ratio has gradually decreased to 0.63 by April 2024, implying that debt financing now contributes to 63% of the total capital structure.
This improving trend suggests that NetApp Inc has been reducing its use of debt as a funding source in relation to equity. Lower debt-to-capital ratios can signify a stronger financial position, better solvency, and reduced financial risk for the company. It may also indicate better access to equity capital or increased profitability, allowing for decreased reliance on borrowing to fund operations or expansion.
Overall, the declining debt-to-capital ratio for NetApp Inc suggests a positive shift towards a more balanced and potentially less risky capital structure.
Peer comparison
Apr 26, 2024