Extreme Networks Inc (EXTR)

Payables 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
Payables	US$ in thousands	63,939	47,110	52,371	65,769	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
Payables turnover		6.74	9.67	8.42	6.84	9.53	6.10	6.19	7.09	5.59	5.55	5.97	5.91	5.72	6.94	7.75	6.87	7.05	7.04	7.37	6.94

June 30, 2025 calculation

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

The payables turnover ratio for Extreme Networks Inc. exhibits notable fluctuations over the analyzed periods. Initially, between September 30, 2020, and September 30, 2021, the ratio demonstrated relative stability, fluctuating narrowly within the range of approximately 6.87 to 7.75. This suggests a consistent approach to managing accounts payable, with suppliers settled roughly every 48 to 53 days during this period.

A decline is observed starting from December 31, 2021, reaching a low point of 5.55 by March 31, 2023. Such a decrease indicates an elongation in the average payment period, implying that the company might be taking longer to pay its suppliers, potentially due to strategic credit management, supply chain considerations, or cash flow management.

Remarkably, from March 31, 2024, onward, a significant increase occurs, with the ratio rising sharply to 9.53 on June 30, 2024, and maintaining relatively high levels through September 2025. This upward trend signifies a contraction in the average days payable, pointing to quicker payments to suppliers or a reduction in payable balances relative to purchases. Such a shift could reflect improved liquidity, a strategic move to strengthen supplier relationships, or a change in credit terms.

Overall, the pattern indicates periods of stability followed by phases of elongation and subsequent shortening in the accounts payable cycle, highlighting strategic and operational adjustments impacting the company's short-term liabilities management.