NetScout Systems Inc (NTCT)

Days of inventory on hand (DOH)

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020
Inventory turnover		16.09	12.72	11.01	12.10	13.30	12.25	12.65	11.70	12.42	11.80	9.29	9.69	7.59	10.30	10.64	10.73	9.74	8.83	9.16	8.81
DOH	days	22.69	28.69	33.16	30.17	27.45	29.78	28.86	31.21	29.38	30.92	39.30	37.65	48.09	35.43	34.31	34.03	37.49	41.34	39.85	41.44

March 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 16.09
= 22.69

NetScout Systems Inc's Days of Inventory on Hand (DOH) has displayed some fluctuations over the past few years. From March 31, 2024, to March 31, 2025, the DOH decreased significantly from 27.45 days to 22.69 days, indicating an improvement in inventory management efficiency.

The trend shows some variance in inventory management performance before the notable drop in DOH. The company experienced a gradual increase in DOH from June 30, 2022, to March 31, 2024, reaching a peak of 48.09 days on March 31, 2022. This increase may have been concerning as higher DOH levels can tie up capital and indicate potential inefficiencies in the supply chain and inventory turnover.

However, the subsequent decrease from 48.09 days to 22.69 days over the following year signals a positive shift towards a more streamlined and effective inventory management process. A lower DOH figure suggests that NetScout Systems Inc is turning over its inventory faster, which can lead to cost savings, improved cash flow, and enhanced overall operational performance.

Overall, monitoring and managing the Days of Inventory on Hand is crucial for NetScout Systems Inc to optimize its working capital, reduce carrying costs, and maintain efficient operations. Continued focus on improving inventory turnover rates and aligning inventory levels with market demand will be essential for the company's long-term financial health and success.