NetScout Systems Inc (NTCT)

Working capital turnover

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Revenue	US$ in thousands	822,679	829,455	914,530	855,575	831,282
Total current assets	US$ in thousands	713,184	672,494	617,360	921,939	722,472
Total current liabilities	US$ in thousands	407,932	395,082	453,607	476,160	411,275
Working capital turnover		2.70	2.99	5.58	1.92	2.67

March 31, 2025 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $822,679K ÷ ($713,184K – $407,932K)
= 2.70

NetScout Systems Inc's working capital turnover ratio has shown some fluctuations over the past five years. The ratio was 2.67 in March 2021, indicating that the company generated $2.67 in revenue for every dollar of working capital invested. However, in March 2022, the ratio dropped to 1.92, suggesting a decrease in efficiency in utilizing working capital.

The following year, in March 2023, the working capital turnover ratio significantly improved to 5.58, reflecting a notable increase in revenue generated from the company's working capital. This improvement indicates a more efficient management of working capital during that period.

In the subsequent years, the ratio remained relatively stable, with values of 2.99 in March 2024 and 2.70 in March 2025. These figures suggest that NetScout Systems Inc has maintained a consistent level of efficiency in generating revenue from its working capital during those years.

Overall, the fluctuations in the working capital turnover ratio indicate varying levels of efficiency in utilizing working capital to generate revenue over the period examined. The significant increase in the ratio in March 2023 may indicate improvements in working capital management practices, while the fluctuations in other years could be attributed to changes in the company's operations or financial strategies.