Extreme Networks Inc (EXTR)

Short-term

Turnover ratios

Extreme Networks Inc's activity ratios reflect its efficiency in managing various aspects of its operations.

1. Inventory turnover: The company's inventory turnover has been showing a declining trend over the periods indicated, ranging from 5.23 to 24.44. In recent periods, the inventory turnover has been relatively high, indicating that Extreme Networks is efficiently managing its inventory levels and quickly converting its inventory into sales.

2. Receivables turnover: Extreme Networks has a consistently high receivables turnover ratio, ranging from 6.00 to 12.78. This suggests that the company is effective in collecting payments from its customers, with a strong emphasis on managing its accounts receivable efficiently.

3. Payables turnover: The payables turnover ratio for Extreme Networks has fluctuated but generally remained at a healthy level, ranging from 9.79 to 18.66. This indicates that the company is efficiently managing its payables and effectively utilizing trade credit from suppliers.

4. Working capital turnover: Extreme Networks' working capital turnover ratios have varied significantly, with some periods showing extremely high turnover levels. This could suggest that the company has been effectively utilizing its working capital to generate sales revenue. However, the ratios are not available for all periods, making it challenging to assess the overall trend accurately.

Overall, Extreme Networks Inc appears to be effectively managing its inventories, receivables, and payables, indicating a good level of efficiency in its operations.

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Average number of days

Extreme Networks Inc's activity ratios show fluctuations over the periods analyzed.

1. Days of inventory on hand (DOH):
- The company's DOH ratio ranged from 16.29 days to 69.74 days over the past few quarters, indicating varying levels of efficiency in managing inventory.
- Generally, a lower DOH is preferable as it suggests faster inventory turnover, leading to reduced holding costs and potential obsolescence risks.
- Extreme Networks Inc showed improvement in inventory management efficiency in the latest quarter compared to the previous quarter.

2. Days of sales outstanding (DSO):
- DSO ranged from 28.56 days to 60.88 days, indicating how long it takes the company to collect payments from customers.
- A lower DSO is favorable as it suggests quicker cash conversion and efficient credit management.
- Extreme Networks Inc managed to reduce DSO in the latest quarter compared to the two previous quarters, indicating improved cash collection efficiency.

3. Number of days of payables:
- The days of payables ratio varied from 19.56 days to 37.29 days, representing the average number of days the company takes to pay its suppliers.
- A longer payable period is generally advantageous for managing cash flow effectively.
- Extreme Networks Inc had fluctuations in its payable period, and in the latest quarter, the company managed to reduce its payment period compared to the previous two quarters.

Overall, Extreme Networks Inc should continue to focus on optimizing inventory management, enhancing cash collection processes, and leveraging payable periods to improve overall working capital efficiency and financial performance.

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Long-term

The fixed asset turnover ratio for Extreme Networks Inc has shown a fluctuating trend over the past several quarters, ranging from a low of 14.11 to a high of 29.15. This ratio indicates the company's ability to generate sales from its investment in fixed assets such as property, plant, and equipment. A higher fixed asset turnover suggests that the company is more effective in utilizing its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has also varied over the periods provided, with values ranging from 0.93 to 1.22. This ratio reflects how efficiently the company is using its total assets to generate sales. A higher total asset turnover indicates that the company is generating more revenue per dollar of assets.

Comparing the two ratios, it seems that Extreme Networks Inc has been more efficient in generating sales from its fixed assets compared to its total assets as a whole. However, it is important to consider other factors and industry benchmarks to gain a comprehensive understanding of the company's long-term activity efficiency.