Extreme Networks Inc (EXTR)

Payables turnover

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Cost of revenue (ttm)	US$ in thousands	959,809	970,171	997,391	1,015,157	987,475	939,256	910,707	883,393	855,845	845,399	820,238	792,666	777,428	737,562	740,998	778,370	821,336	861,196	865,783	836,728
Payables	US$ in thousands	51,423	81,483	87,790	80,003	99,724	95,960	86,350	84,848	84,338	68,504	58,831	63,394	60,142	57,165	53,677	59,440	48,439	52,981	65,995	63,519
Payables turnover		18.66	11.91	11.36	12.69	9.90	9.79	10.55	10.41	10.15	12.34	13.94	12.50	12.93	12.90	13.80	13.10	16.96	16.25	13.12	13.17

June 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $959,809K ÷ $51,423K
= 18.66

The payables turnover ratio for Extreme Networks Inc has shown fluctuating trends over the past few quarters. The ratio has ranged from a low of 9.79 to a high of 18.66. A higher payables turnover ratio indicates that the company is able to pay off its suppliers more quickly, which can be a positive sign of efficient cash management.

In the most recent quarter, the payables turnover ratio was 18.66, which is significantly higher compared to previous quarters. This suggests that Extreme Networks Inc was able to pay off its suppliers almost 19 times during the quarter, indicating a strong ability to manage its accounts payable efficiently.

However, it is important to note that a very high payables turnover ratio may also indicate that the company is being overly aggressive in delaying payments to suppliers, which could strain supplier relationships in the long run.

Overall, the trend in Extreme Networks Inc's payables turnover ratio indicates fluctuations in the company's ability to manage its accounts payable effectively. It would be important for stakeholders to closely monitor this ratio in future quarters to ensure sustainable and healthy supplier relationships.