NetScout Systems Inc (NTCT)

Receivables turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Revenue	US$ in thousands	829,455	914,530	855,575	831,282	891,820
Receivables	US$ in thousands	192,096	143,855	148,245	197,717	213,514
Receivables turnover		4.32	6.36	5.77	4.20	4.18

March 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $829,455K ÷ $192,096K
= 4.32

The receivables turnover ratio for NetScout Systems Inc has fluctuated over the past five years. In the most recent fiscal year ending March 31, 2024, the company achieved a receivables turnover ratio of 4.32, indicating that the company collected its accounts receivable approximately 4.32 times during the year.

Comparing this to the previous years, we see that the receivables turnover was highest at 6.36 in March 2023 and lowest at 4.18 in March 2020. The trend shows that the company has been able to collect its outstanding receivables more efficiently in recent years compared to the previous years.

A higher receivables turnover ratio generally indicates that a company has a more efficient credit and collection process, allowing it to collect outstanding receivables more quickly. On the other hand, a lower ratio may suggest potential issues with collecting receivables or granting credit to customers.

In analyzing NetScout Systems Inc's receivables turnover ratio, it is important to consider industry benchmarks and trends over time to assess the company's effectiveness in managing its accounts receivable.