NetScout Systems Inc (NTCT)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	13.30	12.25	12.65	11.70	12.42	11.80	9.29	9.52	7.59	10.30	8.41	10.73	9.74	8.83	9.16	8.81	10.90	9.53	9.24	9.32
Receivables turnover	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	4.18	3.66	4.37	5.57
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
Working capital turnover	2.99	3.67	4.88	5.51	5.58	3.71	4.78	5.90	1.92	2.15	2.55	2.55	2.67	2.31	2.86	3.26	3.42	3.32	3.97	2.73

NetScout Systems Inc's activity ratios indicate the efficiency of its operations in managing various aspects of its business.

- Inventory turnover: The company's inventory turnover has been relatively stable over the periods, ranging from 7.59 to 13.30. This suggests that NetScout is effectively managing its inventory levels to generate sales, with a higher turnover indicating quicker sales of inventory.

- Receivables turnover: NetScout's receivables turnover has fluctuated considerably, ranging from 3.75 to 8.47. A higher turnover implies that the company is efficient in collecting its accounts receivable, although the variability may warrant closer attention to the collection process.

- Payables turnover: The payables turnover indicates how quickly NetScout pays its suppliers. The turnover has been consistent, ranging from 9.75 to 14.98, suggesting the company manages its payables effectively, balancing timely payments with maintaining good relationships with suppliers.

- Working capital turnover: The working capital turnover measures how efficiently NetScout utilizes its working capital to generate sales. The ratio has varied between 1.92 and 5.90, indicating fluctuations in working capital efficiency. A higher turnover reflects better utilization of working capital.

Overall, NetScout Systems Inc has shown consistent efficiency in managing its inventory, payables, and working capital turnover, while there have been fluctuations in receivables turnover. Monitoring these ratios can help assess operational efficiency and identify areas for improvement.

Average number of days

		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
Days of inventory on hand (DOH)	days	27.45	29.78	28.86	31.21	29.38	30.92	39.30	38.33	48.09	35.43	43.42	34.03	37.49	41.34	39.85	41.44	33.50	38.31	39.51	39.15
Days of sales outstanding (DSO)	days	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	87.39	99.59	83.58	65.57
Number of days of payables	days	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	30.15	30.30	52.57	37.82

NetScout Systems Inc's activity ratios provide insights into its operational efficiency and management of inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH):
- NetScout's average days of inventory on hand have been fluctuating over the recent quarters, ranging between 27.45 days to 48.09 days.
- A lower DOH indicates the company is efficient in managing its inventory levels, while a higher value suggests excess or slow-moving inventory.
- The decreasing trend in DOH from Q2 2022 to Q1 2023 could indicate improved inventory management efficiency during that period.

2. Days of Sales Outstanding (DSO):
- NetScout's days of sales outstanding have varied significantly, ranging from 43.11 days to 99.59 days over the past few quarters.
- A lower DSO value indicates the company is collecting receivables quickly, while a higher value suggests slower collection efforts.
- The decreasing trend in DSO from Q4 2021 to Q2 2022 followed by an increase in the subsequent quarters indicates potential challenges in collecting receivables efficiently.

3. Number of Days of Payables:
- NetScout's number of days of payables has also shown fluctuations, ranging between 24.36 days to 52.57 days.
- A lower number of days of payables suggests the company is paying its suppliers quickly, while a higher value indicates a longer period before settling payables.
- The decreasing trend in days of payables observed from Q4 2021 to Q2 2022 may signify a shift towards quicker payment practices.

Overall, NetScout Systems Inc's activity ratios reflect varying levels of efficiency in managing its inventory, receivables, and payables, with room for improvement in optimizing these operational aspects for enhanced financial performance.

Long-term

	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
Fixed asset turnover	31.32	29.84	28.91	27.61	26.33	23.88	22.97	21.68	20.70	20.55	18.76	17.83	17.15	16.53	16.52	16.11	15.45	15.29	15.10	15.80
Total asset turnover	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	0.29	0.29	0.29	0.28

NetScout Systems Inc's fixed asset turnover has been showing an upward trend over the period indicated, which is a positive sign. This ratio indicates that for each dollar invested in fixed assets, the company generates a higher amount of sales.

On the other hand, the total asset turnover ratio has been relatively stable over the same period, indicating that the company is efficiently utilizing both fixed and current assets to generate sales.

Overall, the company's activity ratios suggest that NetScout Systems Inc is effectively managing its assets to generate revenue. The higher fixed asset turnover indicates efficient use of fixed assets, while the stability of the total asset turnover ratio indicates consistent utilization of both fixed and current assets in generating sales.