NetScout Systems Inc (NTCT)

Interest coverage

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Earnings before interest and tax (EBIT)	US$ in thousands	—	59,248	78,663	50,344	41,367
Interest expense	US$ in thousands	1,808	8,651	10,248	8,048	10,879
Interest coverage		0.00	6.85	7.68	6.26	3.80

March 31, 2025 calculation

Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $1,808K
= 0.00

NetScout Systems Inc's interest coverage ratio has shown fluctuations over the past five years. As of March 31, 2021, the interest coverage ratio stood at 3.80, indicating the company's ability to cover its interest expenses 3.80 times with its operating income.

Subsequently, the interest coverage ratio improved significantly to 6.26 as of March 31, 2022, reflecting a stronger capacity to meet interest obligations. This positive trend continued into the following year, with the ratio increasing to 7.68 as of March 31, 2023, suggesting an even more robust ability to pay interest expenses.

However, there was a slight decline in the interest coverage ratio to 6.85 as of March 31, 2024, although the ratio still remains at a healthy level, indicating the company's continued ability to comfortably cover its interest payments.

Interestingly, the interest coverage ratio dropped to 0.00 as of March 31, 2025. A zero interest coverage ratio implies that the company's operating income was unable to cover its interest expenses, indicating a potential financial strain or liquidity concerns at that point in time.

Overall, the trend in NetScout Systems Inc's interest coverage ratio appears to have been relatively stable and healthy, with occasional fluctuations that may require further scrutiny to understand the underlying reasons for the changes, especially the significant drop in 2025.