NetScout Systems Inc (NTCT)

Cash ratio

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Cash and cash equivalents	US$ in thousands	457,415	389,674	386,794	636,161	467,176
Short-term investments	US$ in thousands	34,058	33,459	32,204	67,037	9,277
Total current liabilities	US$ in thousands	407,932	395,082	453,607	476,160	411,275
Cash ratio		1.20	1.07	0.92	1.48	1.16

March 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($457,415K + $34,058K) ÷ $407,932K
= 1.20

The cash ratio reflects NetScout Systems Inc's ability to cover its short-term liabilities with cash and cash equivalents. Looking at the trend from March 31, 2021, to March 31, 2025, we observe fluctuations in the cash ratio.

The cash ratio stood at 1.16 on March 31, 2021, indicating that NetScout had $1.16 in cash and cash equivalents for every $1 of its short-term liabilities. This ratio increased to 1.48 by March 31, 2022, suggesting improved liquidity and ability to meet immediate obligations.

However, the ratio decreased to 0.92 on March 31, 2023, signaling a potential liquidity concern as the company might have had insufficient cash to cover its short-term liabilities. It rebounded to 1.07 on March 31, 2024, indicating a partial recovery in liquidity.

By March 31, 2025, the cash ratio stood at 1.20, showing a slight improvement in liquidity compared to the previous year but still fluctuating over the period under review. Overall, the cash ratio analysis suggests that NetScout Systems Inc has had varying levels of liquidity over the years, with some periods potentially indicating a challenge in meeting short-term obligations.