Extreme Networks Inc (EXTR)

Inventory turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cost of revenue	US$ in thousands	971,985	987,475	855,845	777,428	816,590
Inventory	US$ in thousands	141,032	89,024	49,231	32,885	62,589
Inventory turnover		6.89	11.09	17.38	23.64	13.05

June 30, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $971,985K ÷ $141,032K
= 6.89

Extreme Networks Inc's inventory turnover has decreased over the past five years, reflecting a declining efficiency in managing its inventory. The inventory turnover ratio has declined from 23.64 in 2021 to 6.89 in 2024. This indicates that the company is holding onto its inventory for a longer period before selling it. A lower inventory turnover may suggest excess inventory, inefficiencies in sales and operations, or challenges in demand forecasting. Extreme Networks Inc should focus on optimizing its inventory management strategies to improve its efficiency and financial performance.