Extreme Networks Inc (EXTR)

Days of inventory on hand (DOH)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Inventory turnover		6.89	11.09	17.38	23.64	13.05
DOH	days	52.96	32.91	21.00	15.44	27.98

June 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.89
= 52.96

Extreme Networks Inc's Days of Inventory on Hand (DOH) has shown a fluctuating trend over the past five years. The company's inventory turnover has varied significantly, increasing from 27.98 days in 2020 to 52.96 days in 2024. This indicates that the company is taking longer to sell its inventory.

The increase in DOH could suggest potential issues, such as overstocking, slowing sales, or inefficient inventory management. A longer DOH may tie up capital, increase carrying costs, and potentially lead to obsolete or expired inventory.

It is important for Extreme Networks Inc to closely monitor and manage its inventory levels to optimize working capital and improve operational efficiency. Analyzing the underlying reasons for the increase in DOH and implementing strategies to streamline inventory management could help the company enhance its financial performance in the future.