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.
Peer comparison
Jun 30, 2024