NetScout Systems Inc (NTCT)

Short-term

Turnover ratios

NetScout Systems Inc's activity ratios provide insights into the company's efficiency in managing its operations related to inventory, receivables, payables, and working capital.

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently the company manages its inventory by indicating how many times during a period the inventory was sold and replaced.
- From March 31, 2021, to March 31, 2025, NetScout Systems Inc saw a fluctuation in its inventory turnover ratio, with the ratio increasing from 9.74 in 2021 to 13.87 in 2025.
- The increasing trend indicates that the company is selling its inventory more quickly and efficiently over the years.

2. Receivables Turnover:
- The receivables turnover ratio assesses how effectively the company collects payments from its customers.
- NetScout Systems Inc experienced variations in its receivables turnover ratio from 4.20 in 2021 to 5.03 in 2025.
- The increasing trend suggests that the company has been managing its accounts receivable more efficiently, collecting payments from customers at a faster rate.

3. Payables Turnover:
- The payables turnover ratio evaluates how efficiently the company is managing its accounts payable by measuring how quickly it pays its suppliers.
- NetScout Systems Inc's payables turnover ratio fluctuated from 12.36 in 2021 to 9.82 in 2025.
- The fluctuations may indicate changes in the company's payment practices with suppliers over the years.

4. Working Capital Turnover:
- The working capital turnover ratio shows how effectively the company utilizes its working capital to generate revenue.
- NetScout Systems Inc reported fluctuations in its working capital turnover ratio from 2.67 in 2021 to 2.70 in 2025.
- The ratios suggest that the company's efficiency in utilizing its working capital to generate revenue remained relatively stable over the years.

Overall, monitoring these activity ratios helps evaluate NetScout Systems Inc's operational efficiency, inventory management, collection of receivables, payment to suppliers, and utilization of working capital in generating revenue.

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Average number of days

NetScout Systems Inc's activity ratios provide valuable insights into the company's efficiency in managing its assets and liabilities.

1. Days of Inventory on Hand (DOH):
- NetScout Systems Inc's DOH has fluctuated over the years, ranging from 26.33 days to 48.09 days.
- A decrease in DOH from 48.09 days in March 2022 to 26.33 days in March 2025 indicates a more efficient inventory management process.
- The declining trend suggests that the company is able to turn its inventory into sales at a faster rate, which can help minimize carrying costs and improve cash flow.

2. Days of Sales Outstanding (DSO):
- The DSO for NetScout Systems Inc has shown variability, with figures ranging from 57.41 days to 86.81 days.
- A decrease in DSO from 86.81 days in March 2021 to 72.61 days in March 2025 signifies an improvement in the company's collection process.
- Lower DSO indicates that the company is collecting payments from customers more quickly, enhancing its liquidity position and reducing the risk of bad debts.

3. Number of Days of Payables:
- NetScout Systems Inc's number of days of payables has been in the range of 26.95 days to 37.42 days.
- The variation in payables turnover suggests changes in the company's payment terms with suppliers.
- An increase in the number of days of payables from 26.95 days in March 2023 to 37.18 days in March 2025 could indicate that the company is taking longer to settle its payables, potentially benefiting from improved cash flow management.

In summary, NetScout Systems Inc's activity ratios demonstrate its ability to manage inventory levels efficiently, collect receivables in a timely manner, and optimize payment terms with suppliers. Monitoring these ratios over time can help assess the company's operational performance and effectiveness in utilizing its resources.

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Long-term

NetScout Systems Inc's fixed asset turnover ratio has shown some fluctuations over the years. In 2021, the fixed asset turnover ratio was 17.15, indicating that the company generated $17.15 in revenue for every dollar invested in fixed assets. However, this ratio decreased to 8.88 in 2022 before significantly increasing to 26.33 in 2023. Unfortunately, data for 2024 and 2025 is unavailable.

On the other hand, the total asset turnover ratio remained relatively stable from 2021 to 2025. The ratio was 0.27 in both 2021 and 2022, increased slightly to 0.32 in 2023 and maintained at that level in 2024. In 2025, the total asset turnover ratio further improved to 0.38, showing that the company generated $0.38 in revenue for every dollar invested in total assets.

These ratios indicate how efficiently NetScout Systems Inc is utilizing its assets to generate revenue. A higher turnover ratio generally suggests better efficiency in asset utilization. The significant increase in the fixed asset turnover ratio in 2023 implies a more effective use of fixed assets to drive revenue, while the incremental improvement in the total asset turnover ratio over the years shows a positive trend in overall asset management and revenue generation.