NetScout Systems Inc (NTCT)

Operating return on assets (Operating ROA)

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Operating income (ttm)	US$ in thousands	-149,826	-111,212	86,985	82,096	77,664	67,707	59,412	50,174	48,634	73,021	49,336	40,950	37,130	33,624	38,673	27,599	17,638	34,307	-3,153	-18,975
Total assets	US$ in thousands	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	3,120,500	3,127,340	3,069,370	3,194,000
Operating ROA		-5.77%	-4.29%	3.22%	3.01%	2.75%	2.33%	2.11%	1.78%	1.52%	2.33%	1.64%	1.35%	1.20%	1.07%	1.26%	0.90%	0.57%	1.10%	-0.10%	-0.59%

March 31, 2024 calculation

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

The operating return on assets (operating ROA) for NetScout Systems Inc has shown some fluctuations over the past few quarters. From March 2020 to March 2023, the operating ROA increased steadily, reaching a peak of 3.22% in September 2023. However, there was a slight decline in the next quarter to 3.01% before dropping further to 2.75% in March 2024.

The negative operating ROA in recent quarters (-5.77% in March 2024 and -4.29% in December 2023) is concerning, indicating that the company's operating income generated from its assets is insufficient to cover operating expenses. This may raise questions about the company's operational efficiency and profitability.

Overall, the fluctuating trend in NetScout Systems Inc's operating ROA suggests potential challenges in effectively utilizing its assets to generate operating income. Further analysis of the company's operational performance and strategic decisions may be needed to address these fluctuations and improve the operating ROA in the future.