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NetApp ROA %

: 9.75% (As of Oct. 2021)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. NetApp's annualized Net Income for the quarter that ended in Oct. 2021 was $896 Mil. NetApp's average Total Assets over the quarter that ended in Oct. 2021 was $9,189 Mil. Therefore, NetApp's annualized ROA % for the quarter that ended in Oct. 2021 was 9.75%.

The historical rank and industry rank for NetApp's ROA % or its related term are showing as below:

NAS:NTAP' s ROA % Range Over the Past 10 Years
Min: 1.19   Med: 6.13   Max: 12.48
Current: 10.5

1.19
12.48

During the past 13 years, NetApp's highest ROA % was 12.48%. The lowest was 1.19%. And the median was 6.13%.

NAS:NTAP's ROA % is ranked higher than
85% of the 2344 Companies
in the Hardware industry.

( Industry Median: 3.40 vs. NAS:NTAP: 10.50 )

NetApp ROA % Historical Data

The historical data trend for NetApp's ROA % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

NetApp Annual Data
Trend Apr12 Apr13 Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.93 1.19 12.48 10.07 8.65

NetApp Quarterly Data
Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21
ROA % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.51 8.51 14.81 8.73 9.75

Competitive Comparison

For the Computer Hardware subindustry, NetApp's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

NetApp ROA % Distribution

For the Hardware industry and Technology sector, NetApp's ROA % distribution charts can be found below:

* The bar in red indicates where NetApp's ROA % falls into.



NetApp ROA % Calculation

NetApp's annualized ROA % for the fiscal year that ended in Apr. 2021 is calculated as:

ROA %=Net Income (A: Apr. 2021 )/( (Total Assets (A: Apr. 2020 )+Total Assets (A: Apr. 2021 ))/ count )
=730/( (7522+9360)/ 2 )
=730/8441
=8.65 %

NetApp's annualized ROA % for the quarter that ended in Oct. 2021 is calculated as:

ROA %=Net Income (Q: Oct. 2021 )/( (Total Assets (Q: Jul. 2021 )+Total Assets (Q: Oct. 2021 ))/ count )
=896/( (9156+9222)/ 2 )
=896/9189
=9.75 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Oct. 2021) net income data. ROA % is displayed in the 30-year financial page.


NetApp  (NAS:NTAP) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Oct. 2021 )
=Net Income/Total Assets
=896/9189
=(Net Income / Revenue)*(Revenue / Total Assets)
=(896 / 6264)*(6264 / 9189)
=Net Margin %*Asset Turnover
=14.3 %*0.6817
=9.75 %

Note: The Net Income data used here is four times the quarterly (Oct. 2021) net income data. The Revenue data used here is four times the quarterly (Oct. 2021) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


NetApp ROA % Related Terms

Thank you for viewing the detailed overview of NetApp's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


NetApp Business Description

NetApp logo
Industry
Technology » Hardware NAICS : 334112 SIC : 3572
Traded in Other Exchanges
Address
1395 Crossman Avenue, Sunnyvale, CA, USA, 94089
NetApp is a leading provider of enterprise data management and storage solutions. The company's three operating business units are products, software maintenance, and hardware maintenance. NetApp transitioned from a data center storage firm to a company with software data management solutions for multicloud environments. The California-headquartered company sells globally and has approximately 10,000 employees.
Executives
Allen Scott R. officer: SVP, Chief Accounting Officer 11690 N.W. 105TH STREET MIAMI FL 33178
Anderson Brad officer: EVP, SSSBU and CIBU ONE DELL WAY ROUND ROCK TX 78682
Hill Kathryn director 7 WORLD TRADE CENTER 250 GREENWICH STREET NEW YORK NY 10007
Ahuja Deepak director C/O TESLA MOTORS, INC. 3500 DEER CREEK ROAD PALO ALTO CA 94304
Schenkel Scott F. director C/O EBAY INC. 2025 HAMILTON AVE. SAN JOSE CA 95125
Kerr Deborah director 901 MARQUETTE AVENUE SUITE 3200 MINNEAPOLIS MN 55402
Nevens Thomas Michael director C/O BORLAND SOFTWARE CORPORATION 20450 STEVENS CREEK BLVD, SUITE 800 CUPERTINO CA 95014
Shaheen George T director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: SHAHEEN GEORGE T a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Held Gerald director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: HELD GERALD a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Cernuda Cesar officer: President 1395 CROSSMAN AVENUE SUNNYVALE CA 94089
Berry Michael J officer: EVP Finance & Operations, CFO C/O INFORMATICA CORPORATION 2100 SEAPORT BOULEVARD REDWOOD CITY CA 94063
Fawcett Matthew K officer: SVP, GC & Secretary 495 EAST JAVA DRIVE SUNNYVALE CA 94089
Kurian George director, officer: CEO C/O NETAPP 495 E. JAVA DRIVE SUNNYVALE CA 94089
Pasek Ronald J officer: EVP Finance & Operations, CFO 101 INNOVATION DRIVE SAN JOSE CA 95134
Richard Henri P officer: EVP, Go To Market FREESCALE SEMICONDUCTOR, INC. 2680 ZANKER RD, SUITE 200 SAN JOSE CA 95134

NetApp Headlines

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