NetScout Systems Inc (NTCT)
Financial leverage ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,595,300 | 2,820,560 | 3,194,710 | 3,085,040 | 3,120,500 |
| Total stockholders’ equity | US$ in thousands | 1,892,060 | 2,029,650 | 2,060,400 | 2,005,780 | 1,937,920 |
| Financial leverage ratio | 1.37 | 1.39 | 1.55 | 1.54 | 1.61 |
March 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,595,300K ÷ $1,892,060K
= 1.37
NetScout Systems Inc's financial leverage ratio has fluctuated over the past five years, indicating changes in the company's level of debt relative to its equity. The financial leverage ratio stood at 1.37 as of March 31, 2024, slightly lower than the prior year. This suggests that the company relied more on equity financing compared to debt in the recent year.
In general, a financial leverage ratio above 1 indicates that the company has more debt than equity in its capital structure, which can amplify returns but also increase financial risk. NetScout Systems Inc's leverage ratio has been gradually decreasing from 1.61 in 2020 to 1.37 in 2024, signaling a potential reduction in financial risk over the years.
Overall, a lower financial leverage ratio indicates a stronger equity base relative to debt, which can enhance financial stability and resilience against economic downturns or unforeseen events. However, it is essential for investors and stakeholders to monitor changes in the financial leverage ratio over time to assess the company's capital structure and risk profile effectively.
Peer comparison
Mar 31, 2024