NetScout Systems Inc (NTCT)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | — | 1.68 | 1.50 | 1.40 | 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 |
| Cash ratio | — | 1.12 | 1.15 | 1.06 | 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 |
NetScout Systems Inc's liquidity ratios provide insight into the company's ability to meet its short-term obligations. The current ratio, which measures the company's ability to pay its current liabilities with its current assets, has shown some fluctuations over the years. As of March 31, 2025, the current ratio was not available.
The current ratio ranged from a low of 1.36 on June 30, 2022, to a high of 1.95 on December 31, 2021. Generally, a current ratio above 1 indicates that NetScout Systems Inc has more current assets than current liabilities, which is favorable in terms of liquidity.
The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. This ratio ranged from 1.17 on June 30, 2022, to 1.83 on December 31, 2021. A quick ratio above 1 indicates that the company can meet its short-term obligations without relying on selling inventory.
The cash ratio, the most stringent liquidity ratio, compares cash and cash equivalents to current liabilities. This ratio ranged from 0.86 on December 31, 2023, to 1.48 on March 31, 2022. A higher cash ratio suggests a stronger ability to cover short-term liabilities from cash reserves.
Overall, NetScout Systems Inc's liquidity ratios demonstrate a generally healthy ability to cover its short-term obligations, though fluctuations in the ratios over time may warrant further examination of the company's liquidity management strategies and business operations.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 58.11 | 96.82 | 60.02 | 57.61 | 83.73 | 97.37 | 63.51 | 49.96 | 59.84 | 93.03 | 61.27 | 51.48 | 73.91 | 102.29 | 74.95 | 70.03 | 94.78 | 100.45 | 82.87 | 72.15 |
The cash conversion cycle of NetScout Systems Inc has shown fluctuations over the given period. It measures the time it takes for a company to convert its resources invested in inventory and accounts receivable into cash received from sales.
From June 30, 2020 (72.15 days) to December 31, 2020 (100.45 days), there was a significant increase in the cash conversion cycle. This suggests that NetScout Systems Inc took longer to convert its investments into cash during that period.
From December 31, 2020 to June 30, 2021, there was a noticeable improvement as the cash conversion cycle decreased to 70.03 days. However, the cycle increased again by September 30, 2021 to 74.95 days.
The trend continued with fluctuations in the following periods, with a peak of 102.29 days on December 31, 2021. Subsequently, there was a decrease to 51.48 days on June 30, 2022, indicating a more efficient conversion of resources into cash.
The cash conversion cycle increased again to 93.03 days by December 31, 2022, before decreasing to 49.96 days on June 30, 2023. The trend of fluctuations continued but generally showed improvements in efficiency over time.
Overall, NetScout Systems Inc has demonstrated varying levels of efficiency in converting its investments into cash, with fluctuations in the cash conversion cycle. It is essential for the company to monitor and manage this cycle effectively to enhance its cash flow and working capital management.