Extreme Networks Inc (EXTR)

Liquidity ratios

	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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Current ratio	0.90	0.96	1.02	1.01	1.00	0.95	0.94	0.96	0.98	0.98	0.92	0.93	1.07	1.01	0.96	0.93	1.04	1.06	0.99	1.06
Quick ratio	0.48	0.46	0.61	0.67	0.72	0.69	0.67	0.71	0.76	0.72	0.66	0.71	0.89	0.80	0.74	0.73	0.80	0.78	0.71	0.76
Cash ratio	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	0.49	0.52	0.33	0.39

Extreme Networks Inc has shown fluctuating liquidity ratios over the past few quarters. The current ratio, which measures the company's ability to pay off its short-term liabilities with its current assets, has been below 1 for most quarters, indicating potential liquidity issues. The quick ratio, a stricter measure of liquidity that excludes inventory from current assets, also shows a downward trend, suggesting a potential difficulty in meeting immediate obligations without relying on inventory sales.

The cash ratio, which indicates the proportion of cash and cash equivalents to cover current liabilities, has also varied significantly over the quarters, with some quarters showing lower levels of cash to cover short-term obligations.

Overall, Extreme Networks Inc's liquidity position appears to be under pressure, as evidenced by the declining trend in the current and quick ratios, as well as the fluctuations in the cash ratio. This may raise concerns about the company's ability to meet its short-term financial obligations without resorting to external financing or asset liquidation. Further monitoring and analysis of the company's liquidity management strategies may be needed to ensure financial stability.

Additional liquidity measure

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Cash conversion cycle	days	63.31	67.64	54.50	43.03	47.31	37.63	38.33	37.40	45.90	40.76	35.99	31.93	44.93	45.19	51.44	48.26	54.71	41.97	63.59	64.02

The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash inflows. Extreme Networks Inc's cash conversion cycle has shown some variability over the past few quarters, ranging from a low of 31.93 days to a high of 67.64 days.

In the most recent quarter, ending June 30, 2024, the cash conversion cycle stood at 63.31 days. This indicates that it takes Extreme Networks Inc approximately 63 days to convert its investments in inventory and other resources into cash inflows.

Looking at the trend over the past quarters, we can observe fluctuations in the cash conversion cycle. In general, a longer cash conversion cycle may indicate inefficiencies in managing inventory, collecting receivables, or paying suppliers. Conversely, a shorter cash conversion cycle may suggest effective working capital management.

To better understand the factors driving changes in the cash conversion cycle, further analysis of Extreme Networks Inc's operating cycle components, such as inventory turnover, accounts receivable turnover, and accounts payable turnover, would be beneficial.