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.