Extreme Networks Inc (EXTR)

Receivables turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Revenue	US$ in thousands	1,117,690	1,295,900	1,103,890	986,853	925,480
Receivables	US$ in thousands	89,518	182,045	184,097	156,476	122,727
Receivables turnover		12.49	7.12	6.00	6.31	7.54

June 30, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,117,690K ÷ $89,518K
= 12.49

The receivables turnover ratio for Extreme Networks Inc has shown a fluctuating trend over the past five years. In the most recent year, as of June 30, 2024, the receivables turnover ratio was 12.49, indicating that the company collected its accounts receivables approximately 12.49 times during the year. This represents a significant improvement compared to the previous year's ratio of 7.12.

The increase in the receivables turnover ratio suggests that Extreme Networks Inc has been more efficient in collecting payments from its customers. A higher turnover ratio is generally favorable as it indicates that the company is collecting payments quickly, which can boost cash flows and liquidity.

However, it is important to note that the receivables turnover ratio of the company has been volatile in the preceding years, ranging from 6.00 to 7.54. This fluctuation may be a reflection of changes in the company's credit policies, customer base, or industry dynamics.

Overall, the upward trend in the receivables turnover ratio for Extreme Networks Inc signifies improved efficiency in managing accounts receivables and cash flow, which can be a positive indicator of the company's financial health and operational performance.