NetScout Systems Inc (NTCT)

NetScout Systems Inc's liquidity ratios show a generally healthy liquidity position over the years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has been fluctuating but remained above 1 in all years, indicating that the company is able to meet its short-term obligations.

The quick ratio, a more stringent measure of liquidity as it excludes inventory from current assets, also reflects a strong liquidity position for NetScout Systems Inc. The quick ratio remained consistently above 1 in all years, showing the company's ability to cover its short-term liabilities with its most liquid assets.

The cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, has shown some variability but generally remained at healthy levels. This indicates that NetScout Systems Inc has a sufficient amount of cash to meet its short-term obligations if needed.

Overall, based on these liquidity ratios, NetScout Systems Inc appears to have a solid liquidity position, with the ability to meet its short-term obligations using its current assets and cash reserves.

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Additional liquidity measure

NetScout Systems Inc's cash conversion cycle has displayed fluctuations over the past five years. In March 2021, the cash conversion cycle was relatively high at 94.78 days, indicating that the company took longer to convert its investments in inventory and accounts receivable into cash.

By March 2023, the cash conversion cycle had improved significantly to 59.84 days, suggesting that NetScout Systems Inc became more efficient in managing its working capital. This reduction in days indicates that the company was able to collect cash from customers more quickly and maintain lower levels of inventory.

However, there was a slight increase in the cash conversion cycle to 83.73 days by March 2024, which may indicate challenges in managing working capital efficiently during that period.

By March 2025, the cash conversion cycle improved once again to 61.75 days, signaling that NetScout Systems Inc was able to enhance its working capital management practices and convert its investments into cash more swiftly.

Overall, NetScout Systems Inc has shown fluctuations in its cash conversion cycle over the years, but the trend indicates an overall improvement in managing working capital efficiently, with some periodic challenges.