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.
Peer comparison
Jun 30, 2024