Extreme Networks Inc (EXTR)

Payables 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
Payables	US$ in thousands	63,939	51,423	99,724	84,338	60,142
Payables turnover		6.74	9.46	5.59	5.72	7.05

June 30, 2025 calculation

Payables turnover = Cost of revenue ÷ Payables
= $430,940K ÷ $63,939K
= 6.74

The payables turnover ratio for Extreme Networks Inc. has exhibited notable fluctuations over the observed period from June 30, 2021, to June 30, 2025. Specifically, the ratio was 7.05 in 2021, indicating that the company was settling its accounts payable approximately 7.05 times within the fiscal year. In 2022, this ratio declined to 5.72, and further to 5.59 in 2023, suggesting an increase in the average days payable outstanding and a potential slowdown in the rate at which the company paid its suppliers.

However, a significant change occurred in 2024, when the ratio sharply increased to 9.46. This uptick indicates a substantial increase in the frequency of accounts payable payments or a decrease in the average payable period, reflecting a more aggressive approach to settling payables within that fiscal year. Conversely, in 2025, the ratio decreased again to 6.74, denoting a moderation compared to the previous year but still higher than the levels observed before 2024.

Overall, the trend demonstrates a period of declining payables turnover from 2021 to 2023, followed by a marked increase in 2024, and a subsequent partial decline in 2025. These fluctuations may reflect changes in the company's purchasing policies, supplier terms, or cash management strategies during these years.