NetScout Systems Inc (NTCT)

Operating profit margin

		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
Operating income (ttm)	US$ in thousands	-367,602	-424,464	-620,624	-608,455	-149,826	-111,212	86,985	82,096	79,944	71,087	62,792	53,554	49,734	73,021	49,336	40,950	37,130	33,624	38,673	27,599
Revenue (ttm)	US$ in thousands	822,679	821,135	787,188	792,882	829,455	834,105	885,577	916,856	914,530	897,628	890,278	874,115	855,575	877,773	844,318	837,739	831,282	847,244	878,529	889,611
Operating profit margin		-44.68%	-51.69%	-78.84%	-76.74%	-18.06%	-13.33%	9.82%	8.95%	8.74%	7.92%	7.05%	6.13%	5.81%	8.32%	5.84%	4.89%	4.47%	3.97%	4.40%	3.10%

March 31, 2025 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-367,602K ÷ $822,679K
= -44.68%

NetScout Systems Inc's operating profit margin has experienced fluctuations over the given periods. The margin increased steadily from June 30, 2020, to December 31, 2021, reaching its peak at 8.32%. Subsequently, the operating profit margin fluctuated between 5.81% and 9.82% until March 31, 2023, showing some stability in profitability.

However, from June 30, 2023, to March 31, 2025, the operating profit margin took a sharp decline, going from 8.95% to -44.68%. This significant drop could indicate challenges faced by the company, such as increased expenses or a decrease in revenue relative to costs.

The negative operating profit margins recorded from December 31, 2023, to March 31, 2025, raise concerns as they indicate that the company's operating expenses exceeded its revenues during those periods, leading to losses. Further investigation into the reasons behind these negative margins may be necessary to understand the company's financial performance and prospects.