NetScout Systems Inc (NTCT)
Profitability ratios
Return on sales
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 77.41% | 75.61% | 74.97% | 73.28% | 72.84% |
| Operating profit margin | -18.06% | 8.49% | 5.68% | 4.47% | 1.98% |
| Pretax margin | -17.42% | 7.48% | 5.01% | 2.68% | 0.22% |
| Net profit margin | -17.81% | 6.52% | 4.19% | 2.33% | -0.31% |
NetScout Systems Inc's profitability ratios have shown some fluctuations over the past five years.
Gross profit margin has generally been on an upward trend, indicating efficiency in production and cost management. The company has improved its ability to generate profits from its core operations, with the gross profit margin reaching a high of 77.41% in 2024.
However, the operating profit margin has been more volatile, with a significant drop in 2024 to -18.06%. This suggests that the company's operating expenses outweighed its operating income in that year, impacting overall profitability.
Similarly, the pretax margin and net profit margin also experienced fluctuations. While there was a notable improvement in profitability in 2023, both margins declined in 2024, with the net profit margin falling to -17.81%.
Overall, the negative trends in operating, pretax, and net profit margins in 2024 may raise concerns about NetScout Systems Inc's ability to effectively manage costs and generate profits. It would be important for the company to focus on improving its operational efficiency and cost controls to enhance its profitability in the future.
Return on investment
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -5.77% | 2.75% | 1.52% | 1.20% | 0.57% |
| Return on assets (ROA) | -5.69% | 2.11% | 1.12% | 0.63% | -0.09% |
| Return on total capital | -6.82% | 3.69% | 2.11% | 1.41% | 0.94% |
| Return on equity (ROE) | -7.81% | 2.94% | 1.74% | 0.96% | -0.14% |
NetScout Systems Inc's profitability ratios have fluctuated over the past five years.
- Operating return on assets (Operating ROA) shows the company's ability to generate operating income from its total assets. It decreased from 2.75% in 2023 to a negative -5.77% in 2024, indicating a decline in operational efficiency.
- Return on assets (ROA) measures how efficiently the company is using its assets to generate profit. Similarly, it decreased significantly from 2.11% in 2023 to a negative -5.69% in 2024, reflecting a decline in overall profitability.
- Return on total capital represents the returns generated on both debt and equity capital invested in the company. It dropped from 3.69% in 2023 to a negative -6.82% in 2024, indicating a decrease in overall returns on the company's capital.
- Return on equity (ROE) shows how effectively the company is utilizing shareholders' equity to generate profit. It also decreased from 2.94% in 2023 to a negative -7.81% in 2024, indicating a decrease in the returns to the equity shareholders.
Overall, the downward trend in profitability ratios suggests that NetScout Systems Inc faced challenges in maintaining profitability and efficiency in 2024 compared to the previous years. Further analysis of the company's financial statements and operational performance may be necessary to understand the reasons behind these declining profitability trends and to devise strategies for improvement.