NetScout Systems Inc (NTCT)

Current ratio

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Total current assets	US$ in thousands	713,184	692,157	583,713	590,050	672,494	609,318	540,521	549,671	617,360	681,947	588,389	563,395	921,939	839,588	701,588	696,256	722,472	762,614	669,408	630,775
Total current liabilities	US$ in thousands	-36,503	381,771	347,102	383,204	395,082	382,252	359,124	383,186	453,607	440,009	402,196	415,194	475,060	431,226	370,787	367,565	411,275	396,219	362,207	357,492
Current ratio		—	1.81	1.68	1.54	1.70	1.59	1.51	1.43	1.36	1.55	1.46	1.36	1.94	1.95	1.89	1.89	1.76	1.92	1.85	1.76

March 31, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $713,184K ÷ $-36,503K
= —

NetScout Systems Inc's current ratio has fluctuated over the historical period provided. The current ratio is a measure of a company's ability to meet its short-term liabilities with its short-term assets. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered favorable.

Looking at the data, we see that the current ratio increased steadily from June 2020 to December 2021, reaching its peak of 1.95 in December 2021. This indicates that the company had a strong ability to cover its short-term obligations with its current assets during this period.

However, from June 2022 onwards, the current ratio started to decline, reaching its lowest point of 1.36 in March 2023. This decrease might suggest that NetScout Systems Inc may have faced challenges in managing its short-term liquidity during this period.

Subsequently, the current ratio showed some improvement, reaching 1.81 by December 2024, indicating a recovery in the company's ability to meet its short-term obligations with its current assets.

Overall, the fluctuation in NetScout Systems Inc's current ratio highlights the importance of monitoring liquidity trends and managing working capital effectively to ensure the company can meet its short-term financial obligations.