NetScout Systems Inc (NTCT)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 430,945 | 2,174,740 | 2,070,670 | 2,085,420 | 2,595,300 | 2,589,800 | 2,697,710 | 2,730,600 | 2,820,560 | 2,904,110 | 2,822,050 | 2,816,640 | 3,194,710 | 3,133,550 | 3,016,400 | 3,033,050 | 3,085,040 | 3,146,320 | 3,077,550 | 3,067,530 |
| Operating ROA | -85.30% | -19.52% | -29.97% | -29.18% | -5.77% | -4.29% | 3.22% | 3.01% | 2.83% | 2.45% | 2.23% | 1.90% | 1.56% | 2.33% | 1.64% | 1.35% | 1.20% | 1.07% | 1.26% | 0.90% |
March 31, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-367,602K ÷ $430,945K
= -85.30%
Operating return on assets (Operating ROA) is a key financial metric that reflects a company's ability to generate profits from its operating activities relative to its total assets. For NetScout Systems Inc, the Operating ROA has fluctuated over the periods analyzed.
From June 2020 to June 2023, NetScout Systems Inc demonstrated a generally positive trend in Operating ROA, with gradual increases in the metric, indicating improving efficiency in generating operating profits relative to its asset base. Notably, the figures ranged from 0.90% in June 2020 to 3.22% in September 2023, reflecting an upward trajectory.
However, from December 2023 onwards, the Operating ROA for NetScout Systems Inc experienced a significant decline, turning negative and reaching -85.30% by March 2025. These negative figures suggest that the company may be facing challenges in effectively utilizing its assets to generate operating profits, potentially indicating inefficiencies or operational issues that need to be addressed.
In conclusion, while NetScout Systems Inc showed improvement in Operating ROA up to September 2023, the subsequent sharp decline in the metric raises concerns about the company's ability to maintain profitability from its operating activities in the periods following. It would be advisable for stakeholders to closely monitor the company's asset management and operational efficiency to address the negative trend in Operating ROA.
Peer comparison
Mar 31, 2025