Extreme Networks Inc (EXTR)
Cash ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 156,699 | 234,826 | 194,522 | 246,894 | 193,872 |
| Short-term investments | US$ in thousands | — | — | 1,314 | — | — |
| Total current liabilities | US$ in thousands | 517,588 | 575,501 | 500,181 | 455,700 | 397,821 |
| Cash ratio | 0.30 | 0.41 | 0.39 | 0.54 | 0.49 |
June 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($156,699K
+ $—K)
÷ $517,588K
= 0.30
The cash ratio of Extreme Networks Inc has exhibited a downward trend over the past five years, decreasing from 0.49 in 2020 to 0.30 in 2024. This indicates that the company's ability to cover its short-term liabilities with cash and cash equivalents has weakened over time. A cash ratio of 0.30 in 2024 suggests that for every dollar of current liabilities, Extreme Networks Inc holds $0.30 in cash and cash equivalents, which may raise concerns about the company's liquidity position. It is important for the company to closely monitor its cash position and ensure it maintains sufficient liquidity to meet its obligations in a timely manner.
Peer comparison
Jun 30, 2024