NetApp Inc (NTAP)
Financial leverage ratio
| Apr 26, 2024 | Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,887,000 | 9,818,000 | 10,026,000 | 9,360,000 | 7,522,000 |
| Total stockholders’ equity | US$ in thousands | 1,146,000 | 1,159,000 | 838,000 | 685,000 | 242,000 |
| Financial leverage ratio | 8.63 | 8.47 | 11.96 | 13.66 | 31.08 |
April 26, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,887,000K ÷ $1,146,000K
= 8.63
The financial leverage ratio of NetApp Inc has shown a decreasing trend over the last five years. The ratio decreased from 31.08 in 2020 to 8.63 in 2024. This indicates that the company has been reducing its reliance on debt to finance its operations and investments. Lower financial leverage ratios suggest that the company has a stronger equity position relative to its debts, which can reduce financial risk and enhance financial stability. Overall, the decreasing financial leverage ratio of NetApp Inc reflects a more conservative capital structure strategy in recent years.
Peer comparison
Apr 26, 2024
Company name
Symbol
Financial leverage ratio
NetApp Inc
NTAP
8.63
Pure Storage Inc
PSTG
2.88
Seagate Technology PLC
STX
—
Western Digital Corporation
WDC
2.24