NetScout Systems Inc (NTCT)

Return on total capital

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	-135,859	78,663	50,940	33,183	22,521
Long-term debt	US$ in thousands	100,000	100,000	350,000	350,000	450,000
Total stockholders’ equity	US$ in thousands	1,892,060	2,029,650	2,060,400	2,005,780	1,937,920
Return on total capital		-6.82%	3.69%	2.11%	1.41%	0.94%

March 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-135,859K ÷ ($100,000K + $1,892,060K)
= -6.82%

NetScout Systems Inc's return on total capital has been fluctuating over the past five years, with a negative return of -6.82% as of March 31, 2024. This signifies that the company's total capital investment has not yielded a positive return in the most recent period.

However, in the preceding years, the returns were positive but relatively low, ranging from 0.94% in March 31, 2020, to 3.69% in March 31, 2023. This indicates that the company's ability to generate profits from its total capital has been inconsistent and has shown only marginal improvement over the years.

Overall, the trend suggests that NetScout Systems Inc may be facing challenges in effectively utilizing its total capital to generate satisfactory returns, as evidenced by the mix of negative and low positive returns in recent years. Further analysis of the company's operational efficiency and capital allocation strategies may be warranted to improve its return on total capital in the future.