Extreme Networks Inc (EXTR)

Days of sales outstanding (DSO)

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Receivables turnover		9.00	10.95	8.64	10.63	12.48	12.97	12.01	10.40	7.21	7.73	7.76	7.20	6.04	6.82	8.11	8.03	6.45	7.25	7.04	7.51
DSO	days	40.57	33.34	42.23	34.34	29.25	28.15	30.39	35.09	50.63	47.20	47.04	50.72	60.41	53.48	45.03	45.43	56.58	50.33	51.84	48.61

June 30, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.00
= 40.57

The analysis of Extreme Networks Inc.’s days of sales outstanding (DSO) over the period from September 30, 2020, through June 30, 2025, reveals notable fluctuations and an overall trend toward improvement.

Initially, at the end of September 2020, the DSO was approximately 48.61 days, indicating that it took roughly 49 days, on average, to collect receivables. During the subsequent quarters, the DSO experienced a gradual increase, peaking at 60.41 days as of June 30, 2022. This upward movement suggests a period during which the company’s collection cycle elongated, potentially reflecting looser credit policies, slower customer payments, or industry-specific challenges affecting receivables turnover.

However, from September 30, 2022, onward, a significant downward trend is observable. The DSO decreased to approximately 47.04 days by the end of December 2022 and stabilized slightly lower, with values such as 47.20 days at the end of March 2023, before further declining to 35.09 days by September 30, 2023. This notable reduction indicates an improvement in the efficiency of receivables collection efforts, suggesting more prompt customer payments or stricter credit management.

The downward trend continued into 2024, with the DSO reaching its lowest point at around 28.15 days at the end of March 2024. Subsequently, the DSO experienced a modest rebound, reaching approximately 42.23 days by December 2024, before slightly decreasing again to approximately 33.34 days as of March 31, 2025. The period from late 2023 through early 2025 exhibits a pattern of stabilization and improvement, moving toward industry or company-specific optimal collection periods.

Overall, the data indicates that Extreme Networks Inc. endured a period of extended receivables collection from mid-2021 to mid-2022, followed by significant operational improvements. The reduction in DSO reflects enhanced receivables management and suggests that the company has become more efficient in converting sales into cash, which can bolster liquidity and reduce credit risk.