NetScout Systems Inc (NTCT)

Debt-to-equity 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-equity ratio		0.05	0.05	0.17	0.17	0.23

March 31, 2024 calculation

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

The debt-to-equity ratio of NetScout Systems Inc has shown a decreasing trend over the five-year period from March 31, 2020, to March 31, 2024. The ratio decreased from 0.23 in 2020 to 0.05 in 2024, indicating a reduction in the company's reliance on debt in relation to equity.

A low debt-to-equity ratio suggests that NetScout Systems Inc is financing a smaller portion of its assets through debt compared to equity. This can be viewed positively by investors and creditors as it indicates lower financial risk and a stronger financial position.

The consistent decrease in the debt-to-equity ratio over the years reflects a prudent financial management strategy by the company, potentially reducing interest expenses and improving overall financial stability. This trend may enhance NetScout Systems Inc's ability to weather economic downturns or pursue strategic investments in the future.

Overall, the declining debt-to-equity ratio for NetScout Systems Inc indicates a favorable trend in its capital structure and financial health, potentially instilling confidence among stakeholders.