NetScout Systems Inc (NTCT)

Days of sales outstanding (DSO)

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Receivables turnover		4.32	3.76	5.80	8.47	6.36	4.16	6.40	7.74	5.77	3.75	5.18	5.73	4.20	4.07	5.18	6.41	4.18	3.66	4.37	5.57
DSO	days	84.53	96.96	62.90	43.11	57.41	87.77	57.04	47.14	63.24	97.24	70.42	63.70	86.81	89.62	70.50	56.95	87.39	99.59	83.58	65.57

March 31, 2024 calculation

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

Days of Sales Outstanding (DSO) is a financial metric that indicates the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO value is typically preferred as it signifies quicker collection of accounts receivable.

Analyzing the DSO trend for NetScout Systems Inc over the past several quarters, we observe fluctuations in the collection period. As of March 31, 2024, the DSO stands at 84.53 days, a decrease from the previous quarter's value of 96.96 days. This implies that the company improved its efficiency in collecting payments from customers.

Looking further back, the DSO has shown variability, peaking at 99.59 days in December 2019 and dropping to a low of 43.11 days in June 2023. The company's ability to manage its accounts receivable effectively appears to have improved compared to recent periods. However, the trend indicates that there have been periods of slower collections, indicating potential challenges in receivables management that the company has faced.

It is important for NetScout Systems Inc to closely monitor and manage its DSO to ensure efficient cash flow management and timely collection of receivables. A consistent focus on improving collection processes and managing credit terms with customers will be essential in maintaining a healthy DSO ratio going forward.