Extreme Networks Inc (EXTR)

Current ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Total current assets	US$ in thousands	466,926	576,158	489,089	487,595	414,207
Total current liabilities	US$ in thousands	517,588	575,501	500,181	455,700	397,821
Current ratio		0.90	1.00	0.98	1.07	1.04

June 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $466,926K ÷ $517,588K
= 0.90

The current ratio of Extreme Networks Inc has exhibited fluctuations over the past five years. As of June 30, 2024, the current ratio stands at 0.90, indicating a decrease from the previous year. This suggests that the company may be facing challenges in meeting its short-term financial obligations with its current assets alone. Comparing this to the ratios in the prior years, we observe a declining trend since 2021 when the current ratio was at its peak at 1.07. It is important to note that a current ratio below 1.0 may raise concerns about the company's liquidity position and ability to cover its current liabilities. Extreme Networks Inc may need to closely monitor and manage its current assets and liabilities to enhance its liquidity position in the upcoming periods.