Extreme Networks Inc (EXTR)

Inventory turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cost of revenue	US$ in thousands	430,940	486,372	557,734	482,383	424,295
Inventory	US$ in thousands	102,578	141,032	89,024	49,231	32,885
Inventory turnover		4.20	3.45	6.26	9.80	12.90

June 30, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $430,940K ÷ $102,578K
= 4.20

The inventory turnover ratio for Extreme Networks Inc. has exhibited a consistent downward trend over the specified period from June 30, 2021, to June 30, 2025. Specifically, the ratio declined from 12.90 times in 2021 to 9.80 times in 2022, indicating a reduction in the number of times inventory is sold and replaced within the year. This downward trajectory continued into 2023 with a significant decrease to 6.26 times, suggesting further slowing in inventory movement. The decline persisted into 2024, reaching a low of 3.45 times, which may reflect increasing inventory levels relative to sales or reduced sales velocity. In 2025, there was a modest recovery, with the ratio slightly increasing to 4.20 times, possibly indicating some improvement in inventory management or sales efficiency. Overall, the steady decline in inventory turnover ratios suggests a trend of increasing inventory holding periods, which could imply challenges in inventory management, seasonal factors, changes in sales dynamics, or shifts in product demand.