Extreme Networks Inc (EXTR)

Number of days of payables

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Payables turnover		18.90	9.90	10.15	12.93	16.86
Number of days of payables	days	19.31	36.86	35.97	28.24	21.65

June 30, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 18.90
= 19.31

Extreme Networks Inc's number of days of payables has fluctuated over the past five years. In the most recent fiscal year ending June 30, 2024, the company took approximately 19.31 days, on average, to pay its suppliers and vendors. This represents a significant improvement compared to the previous years, where the number of days of payables ranged from 21.65 days in 2020 to 36.86 days in 2023.

A decrease in the number of days of payables can indicate that Extreme Networks Inc has been managing its payables more efficiently, possibly negotiating better payment terms with suppliers or improving its working capital management. This could result in cost savings and improved cash flow for the company.

However, it's important to note that a very low number of days of payables could potentially signal that the company is delaying payments to suppliers excessively, which may strain supplier relationships or indicate potential liquidity issues.

Overall, monitoring Extreme Networks Inc's number of days of payables over time can provide insights into the company's payment practices and financial management strategies.