Extreme Networks Inc (EXTR)

Receivables turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Revenue	US$ in thousands	1,140,070	1,117,200	1,312,450	1,112,320	1,009,420
Receivables	US$ in thousands	126,708	89,518	182,045	184,097	156,476
Receivables turnover		9.00	12.48	7.21	6.04	6.45

June 30, 2025 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,140,070K ÷ $126,708K
= 9.00

The receivables turnover ratio for Extreme Networks Inc. demonstrates notable fluctuations over the analyzed period. As of June 30, 2021, the ratio was 6.45, indicating that the company's receivables were collected approximately 6.45 times over the course of the year. This ratio slightly declined to 6.04 by June 30, 2022, suggesting a modest slowdown in the collection process or an increase in receivables outstanding during that period.

Subsequently, the ratio increased to 7.21 as of June 30, 2023, reflecting an improvement in receivables collection efficiency. This upward movement may indicate enhanced credit management or faster collection cycles. The most significant change occurs between June 30, 2023, and June 30, 2024, where the ratio sharply rises to 12.48. Such a substantial increase suggests a considerable acceleration in receivables turnover, potentially due to more stringent credit policies, improved cash collection mechanisms, or changes in sales practices that favor faster payments.

By June 30, 2025, the ratio decreases to 9.00, indicating a partial slowdown relative to the previous year but still maintaining a higher efficiency level compared to earlier years. Overall, the trend reflects an initial slight decline, followed by a marked improvement, and finally a modest reduction, which collectively imply varying degrees of receivables management efficiency over the analyzed timeframe. The notable increase in the ratio in 2024 signifies an improved collection cycle, which could positively impact cash flow and liquidity positions, while the subsequent decrease warrants continued observation to assess the sustainability of collection practices.