NetScout Systems Inc (NTCT)

Return on total capital

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Earnings before interest and tax (EBIT)	US$ in thousands	—	59,248	78,663	50,344	41,367
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,560,400	1,892,060	2,029,650	2,060,400	2,005,780
Return on total capital		0.00%	3.13%	3.88%	2.44%	2.06%

March 31, 2025 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,560,400K)
= 0.00%

NetScout Systems Inc's return on total capital has shown some fluctuation over the past five years.

- In March 2021, the return on total capital was 2.06%, indicating that for every dollar of total capital employed in the business, the company generated a return of 2.06 cents.
- By March 2022, the return on total capital improved to 2.44%, reflecting a slight increase in the company's efficiency in utilizing its capital.
- The performance further improved in March 2023, with a return on total capital of 3.88%, indicating a significant increase in the company's ability to generate profits relative to the total capital invested.
- However, there was a slight decline in March 2024, with the return on total capital decreasing to 3.13%. Even though the return dipped, it remained relatively favorable.
- Notably, in March 2025, the return on total capital dropped to 0.00%, suggesting that the company may not have generated any profit relative to the total capital employed, which may warrant further investigation into the company's financial performance and capital allocation strategies.

Overall, NetScout Systems Inc's return on total capital has shown variability over the years, with some years demonstrating improvement while others experiencing decline. It is essential for stakeholders to closely monitor these trends to assess the company's efficiency in capital utilization and profitability.