NetScout Systems Inc (NTCT)

Working capital turnover

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Revenue (ttm)	US$ in thousands	822,679	821,135	787,188	792,882	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
Total current assets	US$ in thousands	713,184	692,157	583,713	590,050	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
Total current liabilities	US$ in thousands	-36,503	381,771	347,102	383,204	395,082	382,252	359,124	383,186	453,607	440,009	402,196	415,194	475,060	431,226	370,787	367,565	411,275	396,219	362,207	357,492
Working capital turnover		1.10	2.65	3.33	3.83	2.99	3.67	4.88	5.51	5.58	3.71	4.78	5.90	1.91	2.15	2.55	2.55	2.67	2.31	2.86	3.26

March 31, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $822,679K ÷ ($713,184K – $-36,503K)
= 1.10

NetScout Systems Inc's working capital turnover ratio has fluctuated over the past few years, indicating variations in the efficiency of the company's working capital management.

The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher ratio generally suggests better efficiency in managing working capital.

From June 30, 2020, to March 31, 2022, the ratio ranged from 1.91 to 5.90, showing some volatility. There was a significant increase from June 30, 2022, with a ratio of 5.90, indicating a substantial improvement in working capital efficiency. This strong performance was sustained in subsequent periods, albeit with fluctuations.

However, starting from March 31, 2024, the ratio began to decline steadily, reaching 1.10 by March 31, 2025. This decline indicates a potential decrease in efficiency in managing working capital to support the company's sales activities.

Overall, while there have been periods of strong efficiency in utilizing working capital to generate sales revenue, the recent downward trend in the working capital turnover ratio may warrant further evaluation to identify potential areas for improvement in working capital management.