NetScout Systems Inc (NTCT)

Solvency ratios

	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
Debt-to-assets ratio	0.04	0.04	0.04	0.04	0.04	0.07	0.07	0.07	0.11	0.11	0.12	0.12	0.11	0.14	0.15	0.15	0.14	0.14	0.15	0.16
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
Debt-to-equity ratio	0.05	0.05	0.05	0.05	0.05	0.10	0.10	0.10	0.17	0.17	0.18	0.17	0.17	0.23	0.23	0.23	0.23	0.23	0.23	0.25
Financial leverage ratio	1.37	1.36	1.32	1.34	1.39	1.45	1.46	1.48	1.55	1.53	1.51	1.51	1.54	1.59	1.59	1.59	1.61	1.59	1.58	1.59

NetScout Systems Inc's solvency ratios demonstrate consistent stability over the past few quarters. The debt-to-assets ratio has remained relatively low, averaging around 0.07, indicating that only a small portion of the company's assets are financed by debt.

Similarly, the debt-to-capital ratio and debt-to-equity ratio have also shown consistent and low values, averaging around 0.09 and 0.10, respectively. These ratios suggest that NetScout Systems Inc relies more on equity financing rather than debt, which can be considered a positive indicator of financial health.

The financial leverage ratio, averaging around 1.50, has been relatively stable, indicating that the company is not overly reliant on debt to finance its operations. Overall, these solvency ratios suggest that NetScout Systems Inc has maintained a conservative approach to debt management, which bodes well for its long-term financial stability and ability to meet its financial obligations.

Coverage ratios

	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
Interest coverage	-15.70	-10.61	8.85	8.02	7.68	7.85	8.25	6.86	6.33	8.52	4.93	3.86	3.05	2.40	2.54	1.66	1.09	1.71	0.14	-0.50

The interest coverage ratio for NetScout Systems Inc fluctuated significantly over the past few quarters. The ratio has been volatile, ranging from a negative figure of -15.70 in March 2024 to a positive value of 8.85 in September 2023. This indicates that in some periods, the company's earnings were not sufficient to cover its interest expenses, leading to a negative coverage ratio.

Overall, the trend in interest coverage has shown improvement in recent quarters, with the ratio gradually increasing from the negative values seen in late 2021 and early 2022. However, it is worth noting that the interest coverage ratio remains relatively low compared to industry standards, with values hovering around 2 to 8 in the most recent quarters.

The company should focus on managing its interest expenses and improving profitability to ensure sustainable coverage of its interest obligations in the long term. Additionally, investors and creditors may closely monitor this ratio to assess the company's ability to meet its debt obligations.