NetScout Systems Inc (NTCT)

Return on equity (ROE)

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Net income	US$ in thousands	-366,922	-147,734	59,648	35,874	19,352
Total stockholders’ equity	US$ in thousands	1,560,400	1,892,060	2,029,650	2,060,400	2,005,780
ROE		-23.51%	-7.81%	2.94%	1.74%	0.96%

March 31, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-366,922K ÷ $1,560,400K
= -23.51%

NetScout Systems Inc's return on equity (ROE) has exhibited variability over the past five years. In March 2021, the ROE stood at 0.96%, indicating a modest return generated on shareholder equity. Subsequently, there was an increase in ROE to 1.74% by March 2022, reflecting a slight improvement in the company's profitability. The trend continued with the ROE reaching 2.94% by March 2023, indicating further progress in utilizing equity effectively.

However, the company faced a significant decline in performance as seen in March 2024, where the ROE dropped to -7.81%. This negative ROE suggests that NetScout Systems Inc incurred losses, resulting in a deficit in profitability relative to shareholder equity. The downward trend continued into March 2025, with ROE plummeting to -23.51%, signifying a substantial decrease in profitability and efficiency in utilizing equity.

Overall, NetScout Systems Inc's ROE has displayed fluctuations, with periods of improvement followed by significant decline. The negative ROE in the latter years raises concerns about the company's ability to generate satisfactory returns on shareholder equity and highlights the need for further analysis to identify the underlying factors contributing to this performance.