NetScout Systems Inc (NTCT)
Profitability ratios
Return on sales
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 78.27% | 77.41% | 75.61% | 74.97% | 73.28% |
| Operating profit margin | -44.68% | -18.06% | 8.49% | 5.68% | 4.47% |
| Pretax margin | -44.46% | -17.42% | 7.48% | 5.01% | 2.68% |
| Net profit margin | -44.60% | -17.81% | 6.52% | 4.19% | 2.33% |
NetScout Systems Inc has shown a consistent improvement in its profitability ratios over the years based on the data provided.
1. Gross Profit Margin: The company's gross profit margin has been increasing steadily from 73.28% in March 2021 to 78.27% in March 2025. This indicates that NetScout has been effectively managing its production costs and generating more profit from its revenue.
2. Operating Profit Margin: The operating profit margin also improved initially from 4.47% in March 2021 to 8.49% in March 2023; however, there was a sharp decline in March 2024 and 2025, turning negative. This suggests that the company may have faced challenges in controlling its operating expenses in those years.
3. Pretax Margin: Similarly, the pretax margin showed a positive trend, increasing from 2.68% in March 2021 to 7.48% in March 2023. However, like the operating profit margin, it turned negative in March 2024 and 2025. This indicates that the company's pre-tax income declined significantly in those years.
4. Net Profit Margin: The net profit margin followed a similar pattern, with steady improvement from 2.33% in March 2021 to 6.52% in March 2023. Unfortunately, the net profit margin also turned negative in March 2024 and 2025, indicating that the company's net income was affected by various factors leading to losses.
Overall, while NetScout Systems Inc has shown improvement in its gross profit margin and profitability ratios in the initial years, the sharp decline in operating, pretax, and net profit margins in the later years raises concerns about its financial performance and efficiency in managing costs and expenses.
Return on investment
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -16.81% | -5.77% | 2.75% | 1.52% | 1.20% |
| Return on assets (ROA) | -16.78% | -5.69% | 2.11% | 1.12% | 0.63% |
| Return on total capital | 0.00% | 3.13% | 3.88% | 2.44% | 2.06% |
| Return on equity (ROE) | -23.51% | -7.81% | 2.94% | 1.74% | 0.96% |
NetScout Systems Inc's profitability ratios indicate varying levels of performance over the years.
1. Operating return on assets (Operating ROA) has shown an increasing trend from 1.20% in March 31, 2021 to 2.75% in March 31, 2023, but experienced a significant decline to -16.81% in March 31, 2025. This ratio measures the company's operating income generated per dollar of assets.
2. Return on assets (ROA) also displayed a similar trend, improving from 0.63% in March 31, 2021 to 2.11% in March 31, 2023, but dropped to -16.78% in March 31, 2025. ROA reflects the company's overall profitability in relation to its total assets.
3. Return on total capital peaked at 3.88% in March 31, 2023, indicating the return generated from all sources of capital employed by the company. However, by March 31, 2025, this ratio declined to 0.00%.
4. Return on equity (ROE) saw a similar pattern, where it increased from 0.96% in March 31, 2021 to 2.94% in March 31, 2023, but then plummeted to -23.51% by March 31, 2025. ROE measures the return generated on shareholders' equity in the company.
Overall, the company's profitability ratios have been volatile, with some years showing improvement while others experiencing significant declines. This suggests the need for closer examination of the company's operations and financial management to address the declining profitability trends in recent years.