NetScout Systems Inc (NTCT)

Quick ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Cash	US$ in thousands	389,674	386,794	636,161	467,176	338,489
Short-term investments	US$ in thousands	33,459	32,204	67,037	9,277	47,969
Receivables	US$ in thousands	192,096	143,855	148,245	197,717	213,514
Total current liabilities	US$ in thousands	395,082	453,607	476,160	411,275	398,997
Quick ratio		1.56	1.24	1.79	1.64	1.50

March 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($389,674K + $33,459K + $192,096K) ÷ $395,082K
= 1.56

The quick ratio of NetScout Systems Inc has exhibited fluctuations over the past five years. The ratio stood at 1.56 as of March 31, 2024, indicating that the company had $1.56 in liquid assets available to cover each dollar of its current liabilities. This represents an improvement compared to the previous year, where the quick ratio was 1.24.

Looking further back, the quick ratio was highest in 2022 at 1.79 and lowest in 2020 at 1.50. Generally, a quick ratio above 1 is considered healthy as it suggests that a company can meet its short-term obligations without needing to sell inventory.

The increasing trend in the quick ratio from 2023 to 2024 may suggest that NetScout Systems Inc has improved its liquidity position, indicating a better ability to cover its short-term liabilities. However, it is important to continue monitoring this ratio to ensure the company maintains a strong financial position and can manage its liquidity effectively.