NetScout Systems Inc (NTCT)

Debt-to-capital ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
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
Debt-to-capital ratio		0.05	0.05	0.15	0.15	0.19

March 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $100,000K ÷ ($100,000K + $1,892,060K)
= 0.05

The debt-to-capital ratio of NetScout Systems Inc has been relatively stable over the past five years, ranging from 0.05 to 0.19. In 2024 and 2023, the ratio stood at 0.05, indicating a low level of debt relative to its total capital. This suggests that the company primarily relies on equity financing to fund its operations and growth.

In 2022 and 2021, the debt-to-capital ratio increased to 0.15, signaling a moderate increase in debt utilization compared to equity. This could indicate a strategic decision to take on more debt for investment opportunities or other reasons. However, the ratio remained below 0.20, indicating that debt still represents a relatively small portion of the company's capital structure.

The highest debt-to-capital ratio in the past five years was recorded in 2020 at 0.19, suggesting a temporary spike in debt relative to capital. This could potentially be due to specific financing decisions or economic conditions during that period.

Overall, the trend in NetScout Systems Inc's debt-to-capital ratio shows a generally conservative approach to debt management, with a preference for equity financing. However, the slight fluctuations in the ratio over the years indicate a willingness to adjust the capital structure based on business needs and market conditions.