Extreme Networks Inc (EXTR)

Days of sales outstanding (DSO)

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Receivables turnover		12.49	12.78	11.85	10.27	7.12	7.67	7.70	7.15	6.00	6.75	8.00	7.90	6.32	7.05	6.84	7.31	7.54	10.04	6.31	6.54
DSO	days	29.23	28.56	30.81	35.54	51.27	47.60	47.38	51.07	60.88	54.04	45.63	46.18	57.73	51.74	53.34	49.95	48.42	36.37	57.83	55.79

June 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.49
= 29.23

The Days of Sales Outstanding (DSO) ratio for Extreme Networks Inc has shown fluctuations over the past several quarters. DSO measures the average number of days a company takes to collect payment after making a sale. A lower DSO indicates that a company is more efficient in collecting its accounts receivable, while a higher DSO may signal potential issues with collections.

Analyzing the trend in Extreme Networks Inc's DSO ratio, we observe that it has ranged from a low of 28.56 days to a high of 60.88 days over the past eight quarters. The DSO peaked at 60.88 days in the third quarter of 2022, indicating a potential delay in collecting payments from customers. However, the company managed to reduce its DSO to the lowest point of 28.56 days in the second quarter of 2024, demonstrating improved efficiency in collecting receivables.

It is essential for Extreme Networks Inc to continue monitoring and managing its accounts receivable effectively to ensure a healthy cash flow and timely collection of payments. A consistent downward trend in the DSO ratio would be favorable, indicating improved collection practices and financial health for the company.