Extreme Networks Inc (EXTR)

Working capital 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
Total current assets	US$ in thousands	466,926	505,984	558,243	532,456	576,158	502,072	497,665	482,104	489,089	446,876	430,517	424,171	487,595	420,880	403,298	406,680	414,207	395,513	417,612	434,708
Total current liabilities	US$ in thousands	517,588	528,302	548,966	528,718	575,501	526,846	529,102	502,699	500,181	457,790	467,680	455,060	455,700	414,895	422,242	435,611	397,821	374,529	422,957	411,451
Working capital turnover		—	—	143.10	361.33	1,972.76	—	—	—	—	—	—	—	31.02	153.88	—	—	56.46	46.02	—	42.84

June 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,117,793K ÷ ($466,926K – $517,588K)
= —

The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales. A higher ratio indicates that the company is effectively utilizing its current assets to drive revenue.

Based on the data provided, Extreme Networks Inc's working capital turnover has fluctuated significantly over the periods shown. The ratio spiked to 1,972.76 in June 2023, which suggests that the company efficiently converted its working capital into sales during that period. However, this extremely high ratio could also be indicative of irregularities or anomalies in the financial data.

In the subsequent periods, the working capital turnover ratio decreased notably, indicating a potential decrease in efficiency in utilizing working capital to generate revenue. The ratio ranged between 31.02 to 361.33 in the following quarters, displaying fluctuations in the company's working capital management.

Overall, Extreme Networks Inc's working capital turnover ratio demonstrates varying levels of efficiency in converting working capital into sales over the periods analyzed. Further examination of the company's financial statements and industry benchmarks would provide deeper insight into its working capital management practices.