NetScout Systems Inc (NTCT)

Working capital 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
Total current assets	US$ in thousands	672,494	617,360	921,939	722,472	659,743
Total current liabilities	US$ in thousands	395,082	453,607	476,160	411,275	398,997
Working capital turnover		2.99	5.58	1.92	2.67	3.42

March 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $829,455K ÷ ($672,494K – $395,082K)
= 2.99

The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue.

NetScout Systems Inc's working capital turnover has fluctuated over the past five years. In the latest fiscal year ending March 31, 2024, the working capital turnover ratio stood at 2.99, indicating that the company generated approximately $2.99 in sales revenue for every dollar of working capital invested. This represents a decrease from the previous year's ratio of 5.58.

The significant decrease in the working capital turnover ratio from 2023 to 2024 may indicate a decline in the company's efficiency in utilizing its working capital resources to generate sales revenue. It is important to further investigate the reasons behind this decline in efficiency and monitor how the company manages its working capital in the future to ensure optimal performance and financial health.