Extreme Networks Inc (EXTR)

Quick ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cash	US$ in thousands	156,699	234,826	194,522	246,894	193,872
Short-term investments	US$ in thousands	—	—	1,314	—	—
Receivables	US$ in thousands	89,518	182,045	184,097	156,476	122,727
Total current liabilities	US$ in thousands	517,588	575,501	500,181	455,700	397,821
Quick ratio		0.48	0.72	0.76	0.89	0.80

June 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($156,699K + $—K + $89,518K) ÷ $517,588K
= 0.48

The quick ratio of Extreme Networks Inc has shown a declining trend over the past five years. As of June 30, 2024, the quick ratio stands at 0.48, indicating a decrease from the previous year's ratio of 0.72.

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A ratio below 1 suggests that the company may have difficulty meeting its short-term liabilities using only its quick assets such as cash, cash equivalents, and accounts receivable.

The decreasing trend in Extreme Networks Inc's quick ratio raises concerns about its liquidity position and ability to cover its immediate liabilities. Further analysis of its asset composition and cash flow management may be necessary to assess the company's short-term financial health and its ability to withstand potential cash crunches in the future.