NetScout Systems Inc (NTCT)

Payables 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
Payables	US$ in thousands	18,208	13,693	13,911	15,938	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
Payables turnover		9.82	13.39	12.97	11.38	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

March 31, 2025 calculation

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

The payables turnover ratio for NetScout Systems Inc fluctuated over the periods provided. In general, the payables turnover ratio measures how efficiently a company manages its accounts payable by paying off its suppliers.

From June 30, 2020, to March 31, 2022, the payables turnover ratio ranged from approximately 9.75 to 13.91, indicating that the company was managing its accounts payable effectively, paying off suppliers at a relatively steady pace.

However, from March 31, 2022, to June 30, 2024, the payables turnover ratio showed more variability, with values ranging from 9.75 to 14.98. This variability suggests fluctuations in the company's payment practices, which could be influenced by changes in supplier terms, cash flow dynamics, or operational factors.

In the most recent periods, from June 30, 2024, to March 31, 2025, the payables turnover ratio decreased to around 9.82. This decrease may indicate that NetScout Systems Inc is taking longer to pay off its suppliers, which could be due to various factors such as changes in business strategy, cash flow constraints, or renegotiation of payment terms with suppliers.

Overall, a declining payables turnover ratio could potentially signal inefficiencies in the company's payables management, whereas a stable or increasing ratio may indicate effective management of accounts payable. It is essential for stakeholders to monitor this ratio over time to assess the company's ability to efficiently manage its supplier payments.