Extreme Networks Inc (EXTR)

Cash ratio

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 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
Cash and cash equivalents US$ in thousands 231,745 185,480 170,322 159,546 156,699 151,007 221,403 224,434 234,826 202,996 202,521 198,344 194,522 166,566 173,548 191,349 246,894 203,139 183,969 193,116
Short-term investments US$ in thousands — — — — — — — — — 92 808 1,338 1,314 832 — — — — — —
Total current liabilities US$ in thousands 587,875 511,962 534,222 526,409 517,588 528,302 548,966 528,718 575,501 526,846 529,102 502,699 500,181 457,790 467,680 455,060 455,700 414,895 422,242 435,611
Cash ratio 0.39 0.36 0.32 0.30 0.30 0.29 0.40 0.42 0.41 0.39 0.38 0.40 0.39 0.37 0.37 0.42 0.54 0.49 0.44 0.44

June 30, 2025 calculation

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

The analysis of Extreme Networks Inc.'s cash ratio over the specified period indicates a generally stable liquidity position with some fluctuations. The cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, remained relatively consistent around 0.37 to 0.54 during the period from September 2020 through September 2023.

From September 2020 to June 2021, the ratio exhibited a slight upward trend, increasing from 0.44 to a peak of 0.54. This suggests an improvement in liquidity during this interval, implying the company was increasingly capable of meeting short-term obligations with readily available cash. Post-June 2021, the ratio experienced some fluctuation, declining gradually to a trough of 0.37 at the end of 2021 and remaining in that vicinity through March 2023. This stability indicates a consistent level of liquidity, although notably the ratio did not see significant increases, reflecting a steady state in cash holdings relative to liabilities.

In the more recent period from March 2023 to September 2024, the cash ratio demonstrated minor fluctuations within a narrow band of approximately 0.29 to 0.42, with the latest figure in September 2024 at 0.30. The decline observed in early 2024 may suggest a slight reduction in cash reserves relative to liabilities, although the ratio remains within a moderate range, indicating ongoing liquidity adequacy.

Overall, the cash ratio for Extreme Networks Inc. has demonstrated resilience and relative stability over the analyzed timeframe. The fluctuations reflect typical variations in cash holdings against the company's current liabilities, with no indications of sudden liquidity crises. The ratios suggest a conservative liquidity management approach, maintaining sufficient cash resources to meet short-term obligations, with only minor declines that are not indicative of imminent liquidity concerns.