Extreme Networks Inc (EXTR)

Total asset 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
Total assets	US$ in thousands	1,153,220	1,042,590	1,141,710	1,068,510	1,010,090
Total asset turnover		0.99	1.07	1.15	1.04	1.00

June 30, 2025 calculation

Total asset turnover = Revenue ÷ Total assets
= $1,140,070K ÷ $1,153,220K
= 0.99

The total asset turnover ratio of Extreme Networks Inc. demonstrates a fluctuating trend over the specified period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the ratio stood at 1.00, indicating that the company generated approximately one dollar of revenue for every dollar invested in its assets. By June 30, 2022, the ratio increased modestly to 1.04, suggesting a slight improvement in asset utilization efficiency.

The ratio continued its upward trajectory through June 30, 2023, reaching 1.15. This indicates a more efficient use of assets, with the company generating increased revenues relative to its asset base, possibly attributable to operational improvements or better asset management. However, in the following year, the ratio declined to 1.07 by June 30, 2024, reflecting a decrease in asset efficiency, which might be due to increased asset holdings without a proportional rise in revenues or possible changes in business operations.

By June 30, 2025, the total asset turnover further declined to 0.99, approaching the 2021 level, and indicating a reduction in asset utilization efficiency compared to the previous year. This decline could signal potential challenges in generating sales from existing assets or a strategic expansion involving asset investments that have not yet translated into proportional revenue.

Overall, the total asset turnover ratio for Extreme Networks Inc. exhibits a pattern of initial improvement followed by a gradual decline, highlighting variability in the company's capacity to efficiently utilize its assets over the analyzed period.