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NetScout SystemsNTCT +1.18%65 Current Ratio is 1.83 as of Jun. 2026, which is 4% above its 10-year median of 1.76. GuruFocus rates NTCT with a GF Score™ of 65/100 and a GF Value™ of $23.87 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,876 Software companies, NetScout Systems ranks better than 51.18% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. NetScout Systems's current ratio for the quarter that ended in Jun. 2026 was 1.83.
NetScout Systems has a current ratio of 1.83. It generally indicates good short-term financial strength.
The historical rank and industry rank for NetScout Systems's Current Ratio or its related term are showing as below:
NTCT'
s Current Ratio Range Over the Past 10 Years
Min: 1.36 Med: 1.76 Max: 2.12
Current: 1.83
During the past 13 years, NetScout Systems's highest Current Ratio was 2.12. The lowest was 1.36. And the median was 1.76.
NTCT's Current Ratio is ranked better than 51.18% of 2876
companies
in the Software industry
Industry Median: 1.79
vs NTCT: 1.83
NetScout Systems (NAS:NTCT) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
NetScout Systems Current Ratio Related Terms
NetScout Systems Current Ratio Historical Data
* Premium members only.
The historical data trend for NetScout Systems's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Infrastructure subindustry, NetScout Systems's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
NetScout Systems Current Ratio vs Software Industry
For the Software industry and Technology sector, NetScout Systems's Current Ratio distribution charts can be found below:
* The bar in red indicates where NetScout Systems's Current Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NetScout Systems (NTCT) has a Current Ratio of 1.83 as of Jun. 2026. This is near median its historical median of 1.76. Over the past decade, NetScout Systems' Current Ratio has ranged from 1.36 to 2.12. According to the industry distribution chart, NetScout Systems ranks #1404 out of 2876 companies in the Software industry, placing it in the top 48.8%.
Is NetScout Systems' Current Ratio too high?
NetScout Systems' current Current Ratio of 1.83 is near median its 10-year median of 1.76. Over the past 10 years, this metric has ranged from a low of 1.36 to a high of 2.12. The Software industry median Current Ratio is 1.79. NetScout Systems' value of 1.83 is 2.2% above this industry median. Based on the distribution chart, NetScout Systems ranks #1404 out of 2876 companies in the Software industry, which is above the industry midpoint. Overall, NetScout Systems has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NetScout Systems' Current Ratio compare to EEFT and TDC?
According to the Software industry distribution chart, NetScout Systems ranks #1404 out of 2876 companies for Current Ratio. This puts NetScout Systems in the upper half of its industry. The industry median Current Ratio is 1.79. NetScout Systems' value of 1.83 is 2.2% above this benchmark. Historically, NetScout Systems' own Current Ratio has ranged from 1.36 to 2.12 over the past decade. While the company's 10-year median is 1.76 vs. the industry median of 1.79, NetScout Systems has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Software company?
The median Current Ratio among Software companies is 1.79, based on 2,876 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NetScout Systems's current Current Ratio of 1.83 is 2.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median Current Ratio is 1.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NetScout Systems's current Current Ratio is 1.83, which is near median its own 10-year median of 1.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NetScout Systems stock overvalued right now?
Based on GuruFocus' analysis, NetScout Systems (NTCT) is currently considered Significantly Overvalued. The stock's GF Value™ is $23.87, compared to a current price of $38.47 — trading 61.2% above its estimated fair value. The current Current Ratio is 1.83, which is near median its 10-year median of 1.76 and 2.2% above the Software industry median of 1.79. NetScout Systems' overall GF Score™ is 65/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For NetScout Systems (NTCT), the current Current Ratio is 1.83 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is NetScout Systems (NTCT) Overvalued in 2026?
Based on GuruFocus' analysis, NetScout Systems stock appears to be overvalued.
The current stock price of $38.47 is trading 61.2% above its estimated GF Value™ of $23.87.
GuruFocus considers NetScout Systems to be Significantly Overvalued.
Key valuation signals for NTCT:
Current Ratio: 1.83 (near median its 10-year median of 1.76)
GF Value™: $23.87 vs. price of $38.47 (61.2% above fair value)
Industry Position: 2.2% above the Software median (#1404 of 2876)
No single metric tells the full story. See the NTCT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NetScout Systems Inc is engaged in providing enterprise network observability, carrier service assurance, cybersecurity, and Distributed Denial-of-Service (DDoS), protection solutions. It bases its solutions on proprietary adaptive service intelligence technology, which helps customers monitor and identify performance issues and provides insight into network-based security threats. These solutions also deliver real-time and historical information, which provides insight to restore service and understand the quality of user experience. The company derives revenue from the sale of network management tools and security solutions. Its geographical regions include USA, which derives maximum revenue, Europe, Asia, and Rest of the World.
65GF Score
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