Extreme Networks Inc (EXTR)

Current ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Total current assets	US$ in thousands	535,296	466,926	576,158	489,089	487,595
Total current liabilities	US$ in thousands	587,875	517,588	575,501	500,181	455,700
Current ratio		0.91	0.90	1.00	0.98	1.07

June 30, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $535,296K ÷ $587,875K
= 0.91

The current ratio of Extreme Networks Inc. demonstrates a relatively stable but slightly declining trend over the analyzed period from June 30, 2021, to June 30, 2025. Specifically, the ratio was 1.07 in 2021, indicating that current assets exceeded current liabilities by 7%. This position slightly weakened in 2022 to 0.98, approaching near parity but remaining just below a 1:1 threshold, which signals a marginally less comfortable liquidity position. In 2023, the ratio stabilized at 1.00, suggesting that current assets exactly matched current liabilities at that time. However, in the subsequent two years, 2024, and 2025, the ratio further declined to 0.90 and then marginally increased to 0.91, respectively. These values imply that, during these periods, the company's current assets were insufficient to fully cover its current liabilities, with a shortfall of approximately 9% to 10%. Overall, the trend indicates a slight but consistent decrease in liquidity, suggesting that the company's ability to meet short-term obligations with its liquid assets has diminished slightly over the analyzed years.