NetScout Systems Inc (NTCT)

Operating return on assets (Operating ROA)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Operating income	US$ in thousands	-149,826	77,664	48,634	37,130	17,638
Total assets	US$ in thousands	2,595,300	2,820,560	3,194,710	3,085,040	3,120,500
Operating ROA		-5.77%	2.75%	1.52%	1.20%	0.57%

March 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $-149,826K ÷ $2,595,300K
= -5.77%

NetScout Systems Inc's operating return on assets (ROA) has shown fluctuations over the past five years. The operating ROA was negative at -5.77% as of March 31, 2024, indicating that the company's operating income generated from its assets was insufficient to cover the asset base. This could be a cause for concern as it suggests a potential inefficiency or loss in the utilization of assets to generate operating income.

In the previous year, the operating ROA was 2.75%, which was a significant improvement from the negative figure in 2024. This positive trend continued in the preceding years, with the operating ROA gradually increasing from 1.52% in 2022 to 1.20% in 2021 and further to 0.57% in 2020. These positive figures suggest that the company was able to generate more operating income relative to its asset base in those years.

Overall, the fluctuating trend in NetScout Systems Inc's operating ROA indicates varying levels of efficiency in generating operating income from its assets over the past five years. Investors and analysts may further investigate the factors contributing to the negative operating ROA in 2024 and evaluate the company's asset utilization strategies to improve future performance.