Extreme Networks Inc (EXTR)

Fixed asset turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Revenue	US$ in thousands	1,117,690	1,295,900	1,103,890	986,853	925,480
Property, plant and equipment	US$ in thousands	43,744	46,448	49,578	55,004	58,813
Fixed asset turnover		25.55	27.90	22.27	17.94	15.74

June 30, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,117,690K ÷ $43,744K
= 25.55

Extreme Networks Inc's fixed asset turnover ratio has shown a fluctuating trend over the past five years. The ratio measures how efficiently the company is utilizing its fixed assets to generate revenue.

The fixed asset turnover ratio has increased from 15.74 in 2020 to 27.90 in 2023, indicating a significant improvement in the company's ability to generate sales from its fixed assets during this period. However, in 2024, the ratio decreased to 25.55, showing a slight decline in efficiency compared to the previous year.

Overall, Extreme Networks Inc has been effectively utilizing its fixed assets to generate revenue, as indicated by the consistently high fixed asset turnover ratios over the past five years. This suggests that the company has been efficient in managing its fixed assets to drive sales growth. However, fluctuations in the ratio over the years may require further analysis to understand the underlying factors impacting the company's asset utilization efficiency.