NetScout Systems Inc (NTCT)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 1.65 | 1.70 | 1.63 | 1.93 |
| Quick ratio | 1.56 | 1.44 | 1.34 | 1.29 | 1.24 | 1.42 | 1.26 | 1.17 | 1.79 | 1.83 | 1.72 | 1.74 | 1.64 | 1.76 | 1.65 | 1.58 | 1.50 | 1.53 | 1.43 | 1.71 |
| 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 |
NetScout Systems Inc's liquidity ratios demonstrate a generally stable liquidity position over the past five quarters.
The current ratio has been consistently above 1, ranging from 1.36 to 1.94, indicating that the company has sufficient current assets to cover its current liabilities. This indicates a healthy short-term liquidity position.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown a stable trend, with values ranging from 1.17 to 1.83. This suggests that NetScout Systems Inc has an adequate ability to meet its short-term obligations without relying on selling inventory.
The cash ratio, which is the most conservative measure of liquidity as it focuses solely on cash and cash equivalents, has fluctuated but generally remained above 1 in recent quarters. This indicates that the company has a comfortable level of cash to cover its current liabilities without relying on other current assets.
Overall, based on the current, quick, and cash ratios, NetScout Systems Inc appears to have maintained a sound liquidity position, with the ability to meet its short-term obligations effectively over the analyzed period.
Additional liquidity measure
| 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 conversion cycle | days | 83.73 | 97.37 | 63.51 | 49.96 | 59.84 | 93.03 | 61.27 | 52.16 | 73.91 | 102.29 | 84.06 | 70.03 | 94.78 | 100.45 | 82.87 | 72.15 | 90.74 | 107.60 | 70.51 | 66.91 |
The cash conversion cycle of NetScout Systems Inc has fluctuated over the past several quarters. The formula for the cash conversion cycle is Days Sales Outstanding (DSO) + Days Inventory Outstanding (DIO) - Days Payable Outstanding (DPO).
Looking at the data, the company's cash conversion cycle ranged from a low of 49.96 days in June 2023 to a high of 107.60 days in December 2019. Generally, a shorter cash conversion cycle indicates that the company is able to convert its investments in inventory and accounts receivable into cash quickly. Conversely, a longer cash conversion cycle implies that the company takes longer to convert these investments into cash, potentially tying up capital.
NetScout Systems Inc's cash conversion cycle trended higher in the earlier quarters, then decreased towards mid-2023 before fluctuating again. A rising cash conversion cycle could indicate issues with managing inventory or collecting receivables, leading to cash flow challenges. On the other hand, a declining cycle may suggest improvements in efficiency and working capital management.
It is essential for the company to monitor and manage its cash conversion cycle effectively to ensure optimal cash flow and liquidity. Analyzing the components contributing to the cycle, such as DSO, DIO, and DPO, can provide insights into areas where the company can make operational improvements to enhance cash flow and overall financial health.