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NTCT (NetScout Systems) ROE % : 2.50% (As of Sep. 2024)


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What is NetScout Systems ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. NetScout Systems's annualized net income for the quarter that ended in Sep. 2024 was $36.1 Mil. NetScout Systems's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $1,445.7 Mil. Therefore, NetScout Systems's annualized ROE % for the quarter that ended in Sep. 2024 was 2.50%.

The historical rank and industry rank for NetScout Systems's ROE % or its related term are showing as below:

NTCT' s ROE % Range Over the Past 10 Years
Min: -34.34   Med: 1.17   Max: 14.48
Current: -34.34

During the past 13 years, NetScout Systems's highest ROE % was 14.48%. The lowest was -34.34%. And the median was 1.17%.

NTCT's ROE % is ranked worse than
83.2% of 2625 companies
in the Software industry
Industry Median: 4.4 vs NTCT: -34.34

NetScout Systems ROE % Historical Data

The historical data trend for NetScout Systems's ROE % 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.

* Premium members only.

NetScout Systems ROE % Chart

NetScout Systems Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.14 0.98 1.76 2.92 -7.53

NetScout Systems Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.22 -26.89 -6.83 -106.71 2.50

Competitive Comparison of NetScout Systems's ROE %

For the Software - Infrastructure subindustry, NetScout Systems's ROE %, along with its competitors' market caps and ROE % 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's ROE % Distribution in the Software Industry

For the Software industry and Technology sector, NetScout Systems's ROE % distribution charts can be found below:

* The bar in red indicates where NetScout Systems's ROE % falls into.



NetScout Systems ROE % Calculation

NetScout Systems's annualized ROE % for the fiscal year that ended in Mar. 2024 is calculated as

ROE %=Net Income (A: Mar. 2024 )/( (Total Stockholders Equity (A: Mar. 2023 )+Total Stockholders Equity (A: Mar. 2024 ))/ count )
=-147.734/( (2029.649+1892.065)/ 2 )
=-147.734/1960.857
=-7.53 %

NetScout Systems's annualized ROE % for the quarter that ended in Sep. 2024 is calculated as

ROE %=Net Income (Q: Sep. 2024 )/( (Total Stockholders Equity (Q: Jun. 2024 )+Total Stockholders Equity (Q: Sep. 2024 ))/ count )
=36.108/( (1431.996+1459.388)/ 2 )
=36.108/1445.692
=2.50 %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2024) net income data. ROE % is displayed in the 30-year financial page.


NetScout Systems  (NAS:NTCT) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=36.108/1445.692
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(36.108 / 764.432)*(764.432 / 2078.044)*(2078.044 / 1445.692)
=Net Margin %*Asset Turnover*Equity Multiplier
=4.72 %*0.3679*1.4374
=ROA %*Equity Multiplier
=1.74 %*1.4374
=2.50 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=36.108/1445.692
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (36.108 / 49.304) * (49.304 / 66.128) * (66.128 / 764.432) * (764.432 / 2078.044) * (2078.044 / 1445.692)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7324 * 0.7456 * 8.65 % * 0.3679 * 1.4374
=2.50 %

Note: The net income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


NetScout Systems ROE % Related Terms

Thank you for viewing the detailed overview of NetScout Systems's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


NetScout Systems Business Description

Traded in Other Exchanges
Address
310 Littleton Road, Westford, MA, USA, 01886-4105
NetScout Systems Inc is a provider of service assurance and cybersecurity solutions to enterprise and government networks. 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.
Executives
John Downing officer: SVP, Worldwide Sales Operation 310 LITTLETON ROAD, WESTFORD MA 01886
Hadzima Joseph G Jr director ONE BROADWAY, STE 1300, CAMBRIDGE MA 02142
Michael Szabados officer: Chief Operating Officer 271 MATTISON DRIVE, CONCORD MA 01742
Christopher Perretta director C/O STATE STREET CORPORATION, ONE LINCOLN STREET, BOSTON MA 02111
Jean A Bua officer: See Remarks
Marlene Pelage director C/O NETSCOUT SYSTEMS, INC., 310 LITTLETON ROAD, WESTFORD MA 01886
Shannon Nash director C/O USERTESTING, INC., 144 TOWNSEND STREET, SAN FRANCISCO CA 94107
Vivian M Vitale director
Vincent J Mullarkey director 2 WINGATE LANE, ACTON MA 01720
Susan Louise Spradley director C/O NORTEL NETWORKS, 8200 DIXIE ROAD STE 100, BRAMPTON ONTARIO A6 L6T 5PT
Alfred Grasso director C/O NETSCOUT SYSTEMS, INC., 310 LITTLETON ROAD, WESTFORD MA 01886
Victor Demarines director
John R Egan director 176 SOUTH ST., HOPKINTON MA 01748
Robert E Donahue director
Anil K Singhal director, officer: Chief Executive Officer C/O NETSCOUT SYTEMS INC, 310 LITTLETON ROAD, WESTFORD MA 01886