Extreme Networks Inc (EXTR)

Cash ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cash and cash equivalents	US$ in thousands	231,745	156,699	234,826	194,522	246,894
Short-term investments	US$ in thousands	—	—	—	1,314	—
Total current liabilities	US$ in thousands	587,875	517,588	575,501	500,181	455,700
Cash ratio		0.39	0.30	0.41	0.39	0.54

June 30, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($231,745K + $—K) ÷ $587,875K
= 0.39

The cash ratio of Extreme Networks Inc over the period from June 30, 2021, to June 30, 2025, indicates notable fluctuations in the company's liquidity position. As of June 30, 2021, the cash ratio stood at 0.54, suggesting that the company's cash and cash equivalents covered approximately 54% of its current liabilities, a relatively strong liquidity buffer. By June 30, 2022, this ratio decreased to 0.39, reflecting a diminished but still moderate ability to settle current liabilities with cash alone. The slight increase to 0.41 on June 30, 2023, indicates a marginal improvement in liquidity position, although it remains below the 2021 level.

However, a further decline to 0.30 by June 30, 2024, signals a reduction in the company's immediate cash coverage, approaching a lower liquidity threshold. This drop could imply increased reliance on other current assets or a potential strain on cash resources. The ratio then rebounds modestly to 0.39 by June 30, 2025, indicating some improvement, yet it remains significantly below the initial 2021 level.

Overall, the trend reveals a decrease in the company's cash ratio over the analyzed period, illustrating a decline in liquidity relative to current liabilities. This pattern might reflect strategic shifts in cash management, investment activities, or operational changes that have impacted the company's ability to cover short-term obligations solely with cash and cash equivalents.