NetScout Systems Inc (NTCT)

Cash ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cash and cash equivalents	US$ in thousands	389,674	386,794	636,161	467,176	338,489
Short-term investments	US$ in thousands	33,459	32,204	67,037	9,277	47,969
Total current liabilities	US$ in thousands	395,082	453,607	476,160	411,275	398,997
Cash ratio		1.07	0.92	1.48	1.16	0.97

March 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($389,674K + $33,459K) ÷ $395,082K
= 1.07

The cash ratio of NetScout Systems Inc has fluctuated over the past five years. The trend indicates that the company has maintained a relatively healthy level of cash reserves compared to its current liabilities during this period.

In particular:

- In the latest fiscal year ending March 31, 2024, the cash ratio was 1.07, indicating that the company had $1.07 in cash and cash equivalents for every $1 of current liabilities. This suggests a strong ability to cover its short-term obligations with its readily available cash resources.

- The cash ratio was lower in FY 2023 at 0.92, which might indicate a slight decrease in the company's liquidity position compared to the previous year.

- The highest cash ratio observed in the past five years was 1.48 in FY 2022, suggesting a significant increase in liquidity and the company's ability to meet its short-term financial obligations comfortably.

- In FY 2021 and FY 2020, the cash ratios were 1.16 and 0.97, respectively, showing varying levels of liquidity over these years.

Overall, while there have been fluctuations in the cash ratio of NetScout Systems Inc over the past five years, the company has generally maintained a sufficient level of cash reserves to cover its short-term liabilities, with the ability to adapt to changing financial conditions.