NetScout Systems Inc (NTCT)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-377,600	-408,356	-599,890	-589,587	-141,077	-108,228	86,774	83,965	75,922	66,610	55,888	44,207	44,558	69,342	48,342	42,150	38,689	36,964	42,727	33,241
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Return on total capital		-24.20%	-26.86%	-41.11%	-41.17%	-7.46%	-5.68%	4.25%	4.13%	3.74%	3.32%	2.88%	2.32%	2.16%	3.39%	2.42%	2.10%	1.93%	1.87%	2.20%	1.72%

March 31, 2025 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-377,600K ÷ ($—K + $1,560,400K)
= -24.20%

NetScout Systems Inc's return on total capital has shown significant variability over the period in question. The return on total capital ranged from a positive 1.72% in June 2020 to a high of 4.25% in September 2023. However, starting from December 2023, the return on total capital turned negative, indicating a decline in the company's ability to generate returns from the capital employed. By March 2025, the return on total capital stood at -24.20%, reflecting a substantial decrease in the company's efficiency in utilizing its total capital to generate profits. This declining trend in the return on total capital suggests potential challenges in NetScout Systems Inc's operations and financial performance that may require further investigation and strategic intervention to reverse the negative trajectory and improve overall financial health.