NetScout Systems Inc (NTCT)

Cash conversion cycle

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Days of inventory on hand (DOH)	days	27.45	29.38	48.09	37.49	33.50
Days of sales outstanding (DSO)	days	84.53	57.41	63.24	86.81	87.39
Number of days of payables	days	28.25	26.95	37.42	29.52	30.15
Cash conversion cycle	days	83.73	59.84	73.91	94.78	90.74

March 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 27.45 + 84.53 – 28.25
= 83.73

NetScout Systems Inc's cash conversion cycle, a metric that reflects the efficiency of its working capital management, has fluctuated over the past five years. In March 2024, the company's cash conversion cycle stood at 83.73 days, showing an increase compared to the prior year's figure of 59.84 days. This indicates that it took NetScout slightly longer to convert its investments in inventory and accounts receivable into cash during the most recent period.

Despite the recent increase, the company's cash conversion cycle in 2024 remains lower than the levels seen in the fiscal years 2021 and 2020, suggesting an improvement in efficiency over the longer term. The cash conversion cycle of 83.73 days indicates that NetScout is efficient in managing its working capital, but there may be opportunities to further optimize its cash conversion process to enhance liquidity and overall financial performance.