NetScout Systems Inc (NTCT)

Inventory turnover

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Cost of revenue	US$ in thousands	178,735	187,412	223,098	214,186	222,097
Inventory	US$ in thousands	12,891	14,095	17,956	28,220	22,813
Inventory turnover		13.87	13.30	12.42	7.59	9.74

March 31, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $178,735K ÷ $12,891K
= 13.87

NetScout Systems Inc's inventory turnover has shown fluctuations over the past five years. In March 2021, the inventory turnover ratio was 9.74, indicating that the company's inventory was turning over approximately 9.74 times during that fiscal year. However, by March 2022, the ratio decreased to 7.59, suggesting a slower rate of inventory turnover.

The trend then reversed, with the inventory turnover ratio increasing significantly to 12.42 in March 2023, followed by further improvements in the subsequent years. By March 2024, the ratio had increased to 13.30, and by March 2025, it reached 13.87, indicating that NetScout Systems Inc was more efficient in managing its inventory during these periods.

Overall, the upward trend in inventory turnover from 2022 onwards suggests that the company has been effectively managing its inventory levels, which can lead to cost savings and improved profitability. The consistent improvement in inventory turnover reflects positively on NetScout Systems Inc's operational efficiency and inventory management practices.