NetScout Systems Inc (NTCT)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	187,412	188,013	201,191	215,780	223,098	219,819	223,487	217,490	214,186	221,466	216,271	223,527	222,097	229,887	240,197	240,429	242,192	237,996	241,995	246,843
Inventory	US$ in thousands	14,095	15,342	15,909	18,449	17,956	18,621	24,063	22,840	28,220	21,500	25,728	20,841	22,813	26,040	26,223	27,300	22,227	24,977	26,195	26,479
Inventory turnover		13.30	12.25	12.65	11.70	12.42	11.80	9.29	9.52	7.59	10.30	8.41	10.73	9.74	8.83	9.16	8.81	10.90	9.53	9.24	9.32

March 31, 2024 calculation

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

The inventory turnover ratio for NetScout Systems Inc has exhibited some fluctuations over the past several quarters. The trend shows an overall improvement from the first quarter of 2019 to the first quarter of 2022, with a peak of 13.30 in the first quarter of 2024. This indicates that the company is selling its inventory at a faster rate compared to the corresponding period in the prior years.

However, it is essential to note that there was a slight dip in inventory turnover in the second and third quarters of 2022, which could suggest potential challenges in managing inventory levels efficiently during those periods. Nevertheless, the ratio has generally shown an upward trajectory, signaling improved inventory management practices and potentially more effective sales strategies.

Overall, the upward trend in inventory turnover is a positive indication of NetScout Systems Inc's ability to efficiently manage its inventory levels and convert them into sales. Investors and stakeholders may view this trend favorably as it reflects effective operational efficiency and financial performance within the company's supply chain management.