NetScout Systems Inc (NTCT)

Debt-to-capital ratio

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Long-term debt	US$ in thousands	100,000	100,000	100,000	100,000	100,000	200,000	200,000	200,000	350,000	350,000	350,000	350,000	350,000	450,000	450,000	450,000	450,000	450,000	450,000	500,000
Total stockholders’ equity	US$ in thousands	1,892,060	1,903,900	2,039,670	2,031,210	2,029,650	2,005,150	1,937,650	1,906,890	2,060,400	2,047,590	1,999,000	2,002,960	2,005,780	1,978,240	1,939,320	1,929,820	1,937,920	1,962,810	1,940,260	2,011,440
Debt-to-capital ratio		0.05	0.05	0.05	0.05	0.05	0.09	0.09	0.09	0.15	0.15	0.15	0.15	0.15	0.19	0.19	0.19	0.19	0.19	0.19	0.20

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 for NetScout Systems Inc has been relatively stable over the past few quarters, ranging between 0.05 and 0.20. A lower ratio indicates a lower proportion of debt in the company's capital structure compared to equity, suggesting that the company relies more on equity financing.

The gradual increase in the ratio from 0.05 to 0.20 over the quarters may signal a shift towards a slightly higher reliance on debt to fund the company's operations or growth initiatives. However, it is important to note that the ratio remains relatively low, indicating a conservative approach to debt financing.

Overall, the consistent and relatively low debt-to-capital ratio observed in NetScout Systems Inc's financials indicates a prudent balance between debt and equity in the company's capital structure, which can contribute to financial stability and flexibility.