The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. NetApp's current ratio for the quarter that ended in Jul. 2023 was 1.28.
NetApp has a current ratio of 1.28. It generally indicates good short-term financial strength.
The historical rank and industry rank for NetApp's Current Ratio or its related term are showing as below:
NTAP'
s Current Ratio Range Over the Past 10 Years
Min: 1.18 Med: 1.68 Max: 2.81
Current: 1.28
During the past 13 years, NetApp's highest Current Ratio was 2.81. The lowest was 1.18. And the median was 1.68.
NTAP's Current Ratio is ranked worse than 80.57% of 2481
companies
in the Hardware industry
Industry Median: 1.97
vs NTAP: 1.28
NetApp Current Ratio Historical Data
The historical data trend for NetApp's Current Ratio 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
Apr14
Apr15
Apr16
Apr17
Apr18
Apr19
Apr20
Apr21
Apr22
Apr23
Current Ratio
1.45
1.18
1.74
1.50
1.35
NetApp Quarterly Data
Oct18
Jan19
Apr19
Jul19
Oct19
Jan20
Apr20
Jul20
Oct20
Jan21
Apr21
Jul21
Oct21
Jan22
Apr22
Jul22
Oct22
Jan23
Apr23
Jul23
Current Ratio
1.38
1.36
1.34
1.35
1.28
Competitive Comparison
For the Computer Hardware subindustry, NetApp's Current Ratio, along with its competitors' market caps and Current Ratio 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 Current Ratio Distribution
For the Hardware industry and Technology sector, NetApp's Current Ratio distribution charts can be found below:
* The bar in red indicates where NetApp's Current Ratio falls in comparison to its industry or sector. The grey bar indicates the Current Ratio's extreme value range as defined by GuruFocus.
NetApp Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
NetApp's Current Ratio for the fiscal year that ended in Apr. 2023 is calculated as
* 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.
NetApp (NAS:NTAP) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
NetApp Current Ratio Related Terms
Thank you for viewing the detailed overview of NetApp's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
NetApp Inc is a leading provider of enterprise data management and storage solutions. The company's segments include Hybrid Cloud and Public Cloud. It generates maximum revenue from the Hybrid Cloud segment. The Hybrid Cloud segment offers a portfolio of storage management and infrastructure solutions that help customers recast their traditional data centers with the power of cloud. This portfolio is designed to operate with public clouds to unlock the potential of hybrid, multi-cloud operations. Hybrid Cloud is composed of software, hardware, and related support, as well as professional and other services.
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