NetScout Systems Inc (NTCT)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	-366,922	-417,958	-599,345	-586,910	-147,734	-118,536	66,659	62,580	59,648	55,563	50,670	41,183	36,974	55,717	37,013	25,431	19,352	15,251	22,955	9,169
Total stockholders’ equity	US$ in thousands	1,560,400	1,520,580	1,459,390	1,432,000	1,892,060	1,903,900	2,039,670	2,031,210	2,029,650	2,005,150	1,937,650	1,906,890	2,061,500	2,047,590	1,999,000	2,002,960	2,005,780	1,978,240	1,939,320	1,929,820
ROE		-23.51%	-27.49%	-41.07%	-40.99%	-7.81%	-6.23%	3.27%	3.08%	2.94%	2.77%	2.62%	2.16%	1.79%	2.72%	1.85%	1.27%	0.96%	0.77%	1.18%	0.48%

March 31, 2025 calculation

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

NetScout Systems Inc's return on equity (ROE) has shown substantial fluctuations over the reporting periods provided. From June 30, 2020, indicating a modest 0.48% ROE, there was a steady increase in ROE, reaching a peak of 3.27% on September 30, 2023. However, in the subsequent quarters, ROE experienced a significant decline, plunging to negative figures by June 30, 2024, and continuing the downward trend until March 31, 2025, with an ROE of -23.51%.

The negative ROE figures from June 30, 2024, indicate that NetScout Systems Inc's net income was insufficient to cover the equity of its shareholders during those quarters. This could be attributed to various factors such as operating losses, high debt levels, asset write-downs, or a decline in operational efficiency.

Investors and stakeholders should closely monitor NetScout Systems Inc's financial performance and examine the reasons behind the declining ROE to assess the company's profitability, financial health, and sustainability in the long run.