NetScout Systems Inc (NTCT)

Cash ratio

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Cash and cash equivalents	US$ in thousands	389,674	297,655	279,944	332,716	386,794	352,044	320,325	332,502	636,161	548,105	468,470	487,168	467,176	477,755	415,719	403,306	338,489	287,660	245,064	353,721
Short-term investments	US$ in thousands	33,459	31,457	48,652	51,887	32,204	57,262	46,806	42,144	67,037	5,349	7,347	6,737	9,277	12,689	12,127	23,202	47,969	56,274	55,129	84,354
Total current liabilities	US$ in thousands	395,082	382,252	359,124	383,186	453,607	440,009	402,196	415,194	476,160	431,226	370,787	367,565	411,275	396,219	362,207	357,492	398,997	384,104	350,559	349,583
Cash ratio		1.07	0.86	0.91	1.00	0.92	0.93	0.91	0.90	1.48	1.28	1.28	1.34	1.16	1.24	1.18	1.19	0.97	0.90	0.86	1.25

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 shown some fluctuations over the past few quarters. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents on hand.

From the data provided, we can observe that the cash ratio has generally been above 1, indicating that NetScout Systems Inc has had more than enough cash to cover its current liabilities over the periods analyzed. A cash ratio above 1 is considered healthy as it suggests that the company can easily meet its short-term obligations without relying on external sources of financing.

There were fluctuations in the cash ratio over the quarters, with values ranging from 0.86 to 1.48. However, overall, the cash ratio has been relatively stable, with some quarters showing slightly higher ratios compared to others.

It is worth noting that having a cash ratio significantly above 1 may also suggest that the company is holding excess cash that could potentially be invested in other opportunities to generate returns for the business. Conversely, a cash ratio significantly below 1 might indicate liquidity issues or inefficiencies in managing the company's cash resources.

In conclusion, based on the historical data provided, NetScout Systems Inc appears to have maintained a healthy level of cash reserves relative to its short-term liabilities, which is a positive sign for the company's financial health and liquidity position.