NetScout Systems Inc (NTCT)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	829,455	834,105	885,577	916,856	914,530	897,628	890,278	874,115	855,575	877,773	844,318	837,739	831,282	847,244	878,529	889,611	891,820	897,471	883,455	890,831
Total current assets	US$ in thousands	672,494	609,318	540,521	549,671	617,360	681,947	588,389	563,395	921,939	839,588	701,588	696,256	722,472	762,614	669,408	630,775	659,743	654,049	572,994	675,850
Total current liabilities	US$ in thousands	395,082	382,252	359,124	383,186	453,607	440,009	402,196	415,194	476,160	431,226	370,787	367,565	411,275	396,219	362,207	357,492	398,997	384,104	350,559	349,583
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

March 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (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 using its working capital to generate sales revenue. A higher ratio indicates better efficiency in managing working capital.

Over the past few quarters, NetScout Systems Inc's working capital turnover has shown some fluctuations. The ratio ranged from 1.92 to 5.90 across the quarters examined.

From December 2021 to June 2022, there was a significant improvement in the working capital turnover ratio, indicating that the company was able to convert its working capital into sales more efficiently during that period. However, in the following quarters, the ratio decreased slightly.

Overall, NetScout Systems Inc has demonstrated varying levels of efficiency in utilizing its working capital to generate sales revenue during the periods under review. It is important for the company to closely monitor and manage its working capital to sustain or improve its efficiency in the long term.