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NetScout Systems (STU:NSZ) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
NetScout Systems Quick Ratio Related Terms
NetScout Systems Quick Ratio Historical Data
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The historical data trend for NetScout Systems's Quick 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.
STU:NSZ vs EEFT, TDC, STNE: Quick Ratio Comparison
For the Software - Infrastructure subindustry, NetScout Systems's Quick Ratio, along with its competitors' market caps and Quick 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 Quick Ratio vs Software Industry
For the Software industry and Technology sector, NetScout Systems's Quick Ratio distribution charts can be found below:
* The bar in red indicates where NetScout Systems's Quick Ratio falls into.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
NetScout Systems's Quick Ratio for the fiscal year that ended in Mar. 2026 is calculated as
* 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 (STU:NSZ) has a Quick Ratio of 1.78 as of Jun. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on NetScout Systems and its competitors. This is near median its historical median of 1.72. Over the past decade, NetScout Systems' Quick Ratio has ranged from 1.30 to 2.05. According to the industry distribution chart, NetScout Systems ranks #1358 out of 2875 companies in the Software industry, placing it in the top 47.2%.
Is NetScout Systems' Quick Ratio too high?
NetScout Systems' current Quick Ratio of 1.78 is near median its 10-year median of 1.72. Over the past 10 years, this metric has ranged from a low of 1.30 to a high of 2.05. The Software industry median Quick Ratio is 1.68. NetScout Systems' value of 1.78 is 6% above this industry median. Based on the distribution chart, NetScout Systems ranks #1358 out of 2875 companies in the Software industry, which is above the industry midpoint. Overall, NetScout Systems has a GF Score™ of 65/100, reflecting its overall financial health beyond just this single metric.
How does NetScout Systems' Quick Ratio compare to EEFT and TDC?
According to the Software industry distribution chart, NetScout Systems ranks #1358 out of 2875 companies for Quick Ratio. This puts NetScout Systems in the upper half of its industry. The industry median Quick Ratio is 1.68. NetScout Systems' value of 1.78 is 6% above this benchmark. Historically, NetScout Systems' own Quick Ratio has ranged from 1.30 to 2.05 over the past decade. While the company's 10-year median is 1.72 vs. the industry median of 1.68, 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 Quick Ratio for a Software company?
The median Quick Ratio among Software companies is 1.68, based on 2,875 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NetScout Systems's current Quick Ratio of 1.78 is 6% 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 Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on NetScout Systems and its competitors. For the Software industry, the median Quick Ratio is 1.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NetScout Systems's current Quick Ratio is 1.78, which is near median its own 10-year median of 1.72. 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?
NetScout Systems (STU:NSZ) has a current Quick Ratio of 1.78. The stock's GF Value™ is €20.42, compared to a current price of €32.93 — trading 61.3% above its estimated fair value. The current Quick Ratio is 1.78, which is near median its 10-year median of 1.72 and 6% above the Software industry median of 1.68. 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 Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For NetScout Systems (STU:NSZ), the current Quick Ratio is 1.78 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 (STU:NSZ) Overvalued in 2026?
Based on GuruFocus' analysis, NetScout Systems stock appears to be overvalued.
The current stock price of €32.93 is trading 61.3% above its estimated GF Value™ of €20.42.
Key valuation signals for STU:NSZ:
Quick Ratio: 1.78 (near median its 10-year median of 1.72)
GF Value™: €20.42 vs. price of €32.93 (61.3% above fair value)
Industry Position: 6% above the Software median (#1358 of 2875)
No single metric tells the full story. See the STU:NSZ 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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