NetScout Systems Inc (NTCT)

Days of sales outstanding (DSO)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Receivables turnover		4.32	6.36	5.77	4.20	4.18
DSO	days	84.53	57.41	63.24	86.81	87.39

March 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.32
= 84.53

NetScout Systems Inc's days of sales outstanding (DSO) is a metric that reveals the average number of days it takes for the company to collect its accounts receivable. A lower DSO indicates that the company is able to collect payments from customers more quickly, which is generally a positive sign of efficient cash flow management.

Looking at the trend over the past five years, we observe that the DSO has fluctuated. In the most recent fiscal year ending on March 31, 2024, NetScout Systems Inc had a DSO of 84.53 days, which is significantly higher compared to the previous fiscal year where it was 57.41 days. This increase could imply that the company is taking longer to collect payments from customers, potentially indicating challenges with accounts receivable management.

In contrast, the DSO for the fiscal year ending March 31, 2023, was lower at 57.41 days, suggesting a more efficient collection process compared to the year before. However, the DSO had increased in the fiscal year ending March 31, 2021, and March 31, 2020, indicating a potential historical pattern of delayed collections.

Overall, NetScout Systems Inc's DSO trends indicate some variability in collecting accounts receivable efficiently. It may be beneficial for the company to focus on improving its accounts receivable management to ensure consistent cash flow and working capital management.