Extreme Networks Inc (EXTR)

Inventory turnover

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	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
Cost of revenue (ttm)	US$ in thousands	430,940	455,564	440,914	449,689	490,193	497,145	543,268	566,954	557,734	532,248	515,829	501,283	482,383	475,366	455,803	435,592	424,295	402,239	395,836	412,701
Inventory	US$ in thousands	102,578	115,738	132,278	143,555	141,032	185,357	152,521	100,823	89,024	70,310	63,763	51,766	49,231	37,738	37,180	32,439	32,885	43,924	49,830	55,830
Inventory turnover		4.20	3.94	3.33	3.13	3.48	2.68	3.56	5.62	6.26	7.57	8.09	9.68	9.80	12.60	12.26	13.43	12.90	9.16	7.94	7.39

June 30, 2025 calculation

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

The inventory turnover ratio of Extreme Networks Inc has experienced notable fluctuations over the period from September 2020 to June 2025. Initially, the ratio increased from 7.39 in September 2020 to a peak of 13.43 in September 2021, indicating a significant improvement in inventory management efficiency and faster conversion of inventory into sales during this period. This upward trend suggests enhanced operational efficiency and potentially an improved product demand cycle.

Following this peak, the ratio demonstrated a declining trend, falling to 12.26 in December 2021 and slightly rising again to 12.60 in March 2022. Nonetheless, from mid-2022 onward, the ratio continued to decrease more markedly, reaching 9.80 in June 2022 and further declining to 5.62 by September 2023. This downward trajectory suggests a gradual slowdown in inventory turnover, which could reflect issues such as overstocking, reduced sales velocity, or shifts in demand.

By the end of 2023 and into early 2024, the ratio further diminished, hitting a low of 2.68 in March 2024. Although there was a slight recovery to 3.33 in December 2024 and an upward trend toward 4.20 by June 2025, the ratio remains substantially below the earlier peaks. This persistent decline indicates ongoing challenges in inventory management efficiency and lower sales throughput relative to inventory levels.

Overall, the trend in inventory turnover implies that Extreme Networks Inc has experienced a significant reduction in the speed at which inventory is sold and replaced, moving from highly efficient periods in the early part of the timeline to comparatively less efficient periods in subsequent years. The low ratios in recent periods can signal potential concerns regarding inventory management, sales performance, or market demand conditions.