Extreme Networks Inc (EXTR)

Receivables 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
Revenue (ttm)	US$ in thousands	1,140,067	1,089,717	1,016,248	1,033,270	1,117,203	1,224,460	1,345,931	1,367,902	1,312,454	1,226,740	1,179,741	1,142,326	1,112,321	1,112,213	1,080,105	1,041,300	1,009,418	946,852	902,971	928,315
Receivables	US$ in thousands	126,708	99,546	117,575	97,213	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
Receivables turnover		9.00	10.95	8.64	10.63	12.48	12.97	12.01	10.40	7.21	7.73	7.76	7.20	6.04	6.82	8.11	8.03	6.45	7.25	7.04	7.51

June 30, 2025 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,140,067K ÷ $126,708K
= 9.00

The receivables turnover ratio for Extreme Networks Inc exhibits notable fluctuations over the analyzed periods, indicating variability in the company's efficiency in collecting accounts receivable.

At the beginning of the period, as of September 30, 2020, the receivables turnover stood at approximately 7.51, suggesting the company collected its receivables roughly 7.5 times annually. During the following quarter, this ratio slightly declined to 7.04, reflecting a marginal slowdown in receivables collection efficiency.

Throughout 2021, the ratio demonstrated some volatility, with a decline to 6.45 by June 2021, possibly indicating a period of slower collections or increased credit terms. However, by the end of the year, it recovered to around 8.11 in December 2021, suggesting improved receivables management. The first quarter of 2022 saw a decrease to 6.82, reverting to a lower collection efficiency, which continued in the second quarter at 6.04.

In subsequent periods, a modest recovery is observed with ratios of 7.20 in September 2022 and 7.76 in December 2022, implying slight improvements. The ratios remained relatively stable through the first half of 2023, with values close to 7.73 and 7.21 respectively, indicating steady receivables management but not substantial change.

A significant development occurs in the September 2023 quarter, where the receivables turnover surged to approximately 10.40, reflecting a marked improvement in collection efficiency. This upward trend continued into December 2023 and beyond, reaching peaks of 12.97 in March 2024 and maintaining high levels through mid-2024. These ratios suggest the company substantially enhanced its receivables collection process, possibly through stricter credit policies or increased cash sales.

In the most recent periods, there is a slight decline from the peak, with the ratio decreasing to approximately 8.64 in December 2024. However, it again increases to 10.95 in March 2025, indicating recurring improvements in receivables management.

Overall, the company's receivables turnover ratio has demonstrated considerable variability but trends toward higher ratios in the latest periods, implying an overall improvement in the speed of collecting receivables over time, especially after the substantial increase observed starting in the third quarter of 2023. This enhancement in collection efficiency may positively impact cash flow and working capital management.