NetScout Systems Inc (NTCT)

Payables 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
Payables	US$ in thousands	14,506	15,132	15,569	14,400	16,473	15,451	21,474	19,848	21,959	18,436	17,644	16,961	17,964	19,219	18,083	17,288	20,004	19,756	34,855	25,578
Payables turnover		12.92	12.42	12.92	14.98	13.54	14.23	10.41	10.96	9.75	12.01	12.26	13.18	12.36	11.96	13.28	13.91	12.11	12.05	6.94	9.65

March 31, 2024 calculation

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

NetScout Systems Inc's payables turnover ratio has shown fluctuations over the analyzed periods. The payables turnover ratio indicates the efficiency with which the company pays its suppliers. A higher ratio generally signifies that the company is paying its suppliers more quickly.

Looking at the data provided, we see that the payables turnover ratio has ranged from a low of 6.94 in the third quarter of 2019 to a high of 14.98 in the second quarter of 2023. The company's payables turnover ratio peaked at 14.98, indicating that NetScout Systems Inc paid its suppliers nearly 15 times during that period. This suggests that the company was efficiently managing its accounts payable and paying its suppliers in a timely manner.

It is important to note that, overall, the payables turnover ratio has been relatively high, staying above 10 for most of the periods, which indicates that NetScout Systems Inc has been efficient in managing its accounts payable and maintaining a good relationship with its suppliers.

However, the fluctuation in the ratio over time could be a result of various factors such as changes in the company's payment terms, business operations, or supplier relationships. Further analysis and comparison with industry benchmarks would provide more insights into the company's payables management efficiency.