NetScout Systems Inc (NTCT)

Days of sales outstanding (DSO)

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Receivables turnover		5.03	4.32	6.36	5.77	4.20
DSO	days	72.61	84.53	57.41	63.24	86.81

March 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.03
= 72.61

The Days Sales Outstanding (DSO) is a metric used to evaluate how efficiently a company is able to collect its accounts receivable. In the case of NetScout Systems Inc, the trend in DSO over the past five years has fluctuated.

As of March 31, 2021, NetScout Systems Inc had a DSO of 86.81 days, indicating that, on average, it took the company about 86.81 days to collect its accounts receivable. Over the following years, there was a general improvement in the DSO metric. By March 31, 2023, the DSO had decreased to 57.41 days, which suggests that the company was able to collect its receivables more quickly.

However, there was a slight increase in DSO by March 31, 2024, where it rose to 84.53 days before declining again to 72.61 days by March 31, 2025. This fluctuation in DSO could indicate changes in the company's credit policies, customer payment behavior, or overall economic conditions affecting accounts receivable collections.

In conclusion, while NetScout Systems Inc has shown some improvement in managing its accounts receivable over the years, there were fluctuations in the DSO metric, and it may be beneficial for the company to continue monitoring and managing its receivables effectively to ensure timely collection and cash flow efficiency.