NetScout Systems Inc (NTCT)

Payables 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
Payables	US$ in thousands	14,506	16,473	21,959	17,964	20,004
Payables turnover		12.92	13.54	9.75	12.36	12.11

March 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $187,412K ÷ $14,506K
= 12.92

The payables turnover ratio of NetScout Systems Inc has fluctuated over the past five years, ranging from 9.75 to 13.54. The average payables turnover for the period is approximately 12.14. This indicates that, on average, NetScout Systems Inc is able to convert its accounts payable into cash approximately 12.14 times in a year.

A higher payables turnover ratio suggests that the company is managing its accounts payable efficiently by paying off its suppliers more frequently. This could indicate strong liquidity management or favorable credit terms negotiated with suppliers. On the other hand, a lower payables turnover ratio may indicate that the company is taking longer to pay off its suppliers, potentially signaling liquidity issues or strained supplier relationships.

Overall, NetScout Systems Inc has shown relatively consistent performance in managing its accounts payable over the past five years, with fluctuations within a reasonable range. Further analysis, considering industry benchmarks and other financial metrics, would provide more insights into the company's overall financial health and efficiency in managing its working capital.