NetScout Systems Inc (NTCT)

Inventory turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cost of revenue	US$ in thousands	187,412	223,098	214,186	222,097	242,192
Inventory	US$ in thousands	14,095	17,956	28,220	22,813	22,227
Inventory turnover		13.30	12.42	7.59	9.74	10.90

March 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $187,412K ÷ $14,095K
= 13.30

The inventory turnover of NetScout Systems Inc has shown a fluctuating trend over the past five years. In the most recent fiscal year ending March 31, 2024, the inventory turnover ratio increased to 13.30 from the previous year's 12.42. This indicates that the company's inventory was sold and replaced 13.30 times during the year.

Comparing to the previous years, the inventory turnover ratio was 7.59 in 2022, 9.74 in 2021, and 10.90 in 2020. The increase in inventory turnover from 2022 to 2024 implies that the company managed its inventory more efficiently in recent years, possibly due to better inventory management practices, improved demand forecasting, or streamlined operations.

A high inventory turnover ratio signifies that NetScout Systems Inc is effectively managing its inventory levels, converting inventory into sales quickly, and minimizing the risk of obsolete or excess inventory. However, the company should continue to monitor and optimize its inventory management strategies to sustain this positive trend and enhance overall operational efficiency.