NetScout Systems Inc (NTCT)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 5.03 3.83 6.64 6.13 4.32 3.76 5.80 8.47 6.36 4.16 6.40 7.74 5.77 3.75 5.18 5.73 4.20 4.07 5.18 6.41
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
Working capital turnover 1.10 2.65 3.33 3.83 2.99 3.67 4.88 5.51 5.58 3.71 4.78 5.90 1.91 2.15 2.55 2.55 2.67 2.31 2.86 3.26

NetScout Systems Inc's activity ratios provide insights into how effectively the company manages its assets and operations.

1. Inventory Turnover: NetScout's inventory turnover has shown a generally increasing trend over the years, indicating that the company is selling its inventory more frequently. This suggests efficient inventory management and a faster turnover of goods, which is generally positive for the company.

2. Receivables Turnover: The receivables turnover ratio has fluctuated over the years, with some periods showing improvements in collecting receivables efficiently. However, there are also periods where the turnover has decreased, indicating potential issues with collecting payments from customers promptly.

3. Payables Turnover: NetScout's payables turnover ratio has fluctuated as well, but generally, it has been relatively stable. A higher payables turnover ratio may suggest that the company is managing its payments to suppliers effectively and possibly taking advantage of favorable credit terms.

4. Working Capital Turnover: The working capital turnover ratio has also shown fluctuations over the years. A higher turnover ratio indicates that NetScout is generating more revenue relative to its working capital, which could be a sign of efficient use of working capital to generate sales.

Overall, while different activity ratios exhibit varying trends over the periods analyzed, it is essential for NetScout Systems Inc to monitor and manage these ratios effectively to ensure optimal asset utilization and operational efficiency.

Average number of days

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
Days of inventory on hand (DOH) days 22.69 28.69 33.16 30.17 27.45 29.78 28.86 31.21 29.38 30.92 39.30 37.65 48.09 35.43 34.31 34.03 37.49 41.34 39.85 41.44
Days of sales outstanding (DSO) days 72.61 95.38 55.01 59.51 84.53 96.96 62.90 43.11 57.41 87.77 57.04 47.14 63.24 97.24 70.42 63.70 86.81 89.62 70.50 56.95
Number of days of payables days 37.18 27.25 28.15 32.07 28.25 29.38 28.25 24.36 26.95 25.66 35.07 33.31 37.42 30.38 29.78 27.70 29.52 30.51 27.48 26.25

NetScout Systems Inc's activity ratios provide insights into how efficiently the company manages its inventory, accounts receivable, and accounts payable.

1. Days of Inventory on Hand (DOH):
- The trend in the Days of Inventory on Hand shows a fluctuating pattern but generally decreasing from 41.44 days as of June 2020 to 22.69 days as of March 2025.
- A lower DOH indicates that NetScout is holding less inventory on hand and is managing inventory more efficiently over time.
- The company has been able to reduce its inventory holding period, which may signify effective inventory management practices and potentially lower storage costs.

2. Days of Sales Outstanding (DSO):
- The Days of Sales Outstanding fluctuated over the period but showed a declining trend from 89.62 days as of December 2020 to 72.61 days as of March 2025.
- A decrease in DSO suggests that the company is collecting its accounts receivable more quickly, improving cash flow.
- The declining trend in DSO indicates that NetScout has been able to efficiently collect payment from customers over time, reducing the time it takes to convert sales into cash.

3. Number of Days of Payables:
- The Number of Days of Payables has shown some fluctuations but generally remained stable over the period, ranging from 24.36 days to 37.42 days.
- A stable days of payables indicate NetScout's consistent payment practices to its suppliers.
- The efficiency in managing payables suggests that the company is maintaining good relationships with suppliers while effectively managing its cash flow.

In conclusion, based on the analysis of activity ratios, it appears that NetScout Systems Inc has been improving its efficiency in managing inventory, collecting receivables, and managing payables over the period, which is a positive indicator of the company's operational performance and financial health.

Long-term

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
Fixed asset turnover — — — — — — — 27.61 26.33 23.88 10.06 21.68 8.88 8.87 18.76 7.91 17.15 16.53 16.52 16.11
Total asset turnover 1.91 0.38 0.38 0.38 0.32 0.32 0.33 0.34 0.32 0.31 0.32 0.31 0.27 0.28 0.28 0.28 0.27 0.27 0.29 0.29

NetScout Systems Inc's fixed asset turnover has shown fluctuations over the years, starting at a high of 16.11 in June 2020, peaking at 27.61 in June 2023, before dropping to 10.06 in September 2022, and finally climbing to 26.33 in March 2023. This ratio indicates how efficiently the company generates sales from its fixed assets.

In terms of total asset turnover, the company's performance has been relatively stable, hovering around 0.27 to 0.38 from June 2020 to June 2024. However, there was a significant increase to 1.91 in March 2025, indicating a sharp improvement in how effectively the company utilizes its total assets to generate revenue.

Overall, the company's ability to generate sales from both its fixed assets and total assets has shown varying trends, with the total asset turnover experiencing a notable spike in the most recent period, signaling a potential improvement in overall asset utilization efficiency.