NetScout Systems Inc (NTCT)

Inventory turnover

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Cost of revenue (ttm)	US$ in thousands	178,735	183,378	180,390	181,385	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
Inventory	US$ in thousands	11,109	14,414	16,388	14,994	14,095	15,342	15,909	18,449	17,956	18,621	24,063	22,435	28,220	21,500	20,328	20,841	22,813	26,040	26,223	27,300
Inventory turnover		16.09	12.72	11.01	12.10	13.30	12.25	12.65	11.70	12.42	11.80	9.29	9.69	7.59	10.30	10.64	10.73	9.74	8.83	9.16	8.81

March 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $178,735K ÷ $11,109K
= 16.09

NetScout Systems Inc's inventory turnover has shown fluctuations over the periods indicated. The inventory turnover ratio reflects how efficiently the company manages its inventory. A higher turnover ratio indicates that the company sells its inventory quickly, which is generally favorable.

From June 30, 2020, to March 31, 2022, the inventory turnover ratio has been consistently increasing, indicating improved efficiency in managing inventory levels. However, from March 31, 2022, to June 30, 2023, there was a slight decrease in the ratio.

Notably, from June 30, 2023, to March 31, 2025, there has been a significant increase in the inventory turnover ratio, reaching its peak at 16.09. This sharp rise suggests that NetScout Systems Inc has been successfully selling its inventory at a faster rate compared to the earlier periods.

Overall, the trend in the inventory turnover ratio for NetScout Systems Inc indicates a positive efficiency in managing and selling inventory, which is crucial for enhancing the company's overall financial performance and profitability.