Extreme Networks Inc (EXTR)

Receivables 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
Revenue (ttm)	US$ in thousands	1,117,793	1,206,801	1,327,505	1,350,661	1,296,105	1,216,506	1,171,259	1,134,452	1,103,793	1,100,623	1,066,015	1,024,318	989,353	920,965	877,599	903,377	925,180	965,663	1,008,491	996,267
Receivables	US$ in thousands	89,518	94,438	112,047	131,511	182,045	158,637	152,050	158,727	184,097	162,967	133,255	129,611	156,476	130,558	128,242	123,637	122,727	96,212	159,790	152,277
Receivables turnover		12.49	12.78	11.85	10.27	7.12	7.67	7.70	7.15	6.00	6.75	8.00	7.90	6.32	7.05	6.84	7.31	7.54	10.04	6.31	6.54

June 30, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,117,793K ÷ $89,518K
= 12.49

Receivables turnover measures how efficiently a company is able to collect cash from its customers during a specific period. A higher receivables turnover ratio indicates that the company is collecting its accounts receivable more quickly.

Looking at the receivables turnover of Extreme Networks Inc over the past few quarters, we can see fluctuations in the ratio. In the most recent quarter, the company's receivables turnover was 12.49, which indicates that Extreme Networks Inc collected its accounts receivable approximately 12.49 times during the quarter. This is an improvement compared to the previous quarter's ratio of 12.78.

The trend in receivables turnover over the last few quarters shows some variability, with the ratio ranging from a low of 6.00 to a high of 12.78. This variability could be due to changes in the company's credit policies, customer payment behavior, or seasonality factors.

Overall, the recent increase in the receivables turnover ratio suggests that Extreme Networks Inc has been more effective in collecting cash from its customers in the most recent quarter. However, it's essential to monitor this ratio over time to ensure that the company's credit and collection policies remain efficient.