NetScout Systems Inc (NTCT)

Payables 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
Payables	US$ in thousands	18,208	14,506	16,473	21,959	17,964
Payables turnover		9.82	12.92	13.54	9.75	12.36

March 31, 2025 calculation

Payables turnover = Cost of revenue ÷ Payables
= $178,735K ÷ $18,208K
= 9.82

The payables turnover ratio for NetScout Systems Inc has been fluctuating over the past five years. Starting at 12.36 in March 2021, it decreased to 9.75 in March 2022, before rebounding to 13.54 in March 2023. Subsequently, it slightly declined to 12.92 in March 2024, and then fell to 9.82 in March 2025. This ratio indicates the company's efficiency in managing its accounts payable, with higher values suggesting that the company is paying off its suppliers more quickly. The decrease in the payables turnover ratio over the years may signify a longer time taken by the company to settle its payables, impacting its liquidity and relationships with suppliers. It would be beneficial for NetScout Systems Inc to closely monitor its payables turnover ratio to ensure effective working capital management.