Extreme Networks Inc (EXTR)

Quick ratio

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 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
Cash US$ in thousands 231,745 185,480 170,322 159,546 156,699 151,007 221,403 224,434 234,826 202,996 202,521 198,344 194,522 166,566 173,548 191,349 246,894 203,139 183,969 193,116
Short-term investments US$ in thousands — — — — — — — — — 92 808 1,338 1,314 832 — — — — — —
Receivables US$ in thousands 126,708 99,546 117,575 97,213 89,518 94,438 112,047 131,511 182,045 158,637 152,050 158,727 184,097 162,967 133,255 129,611 156,476 130,558 128,242 123,637
Total current liabilities US$ in thousands 587,875 511,962 534,222 526,409 517,588 528,302 548,966 528,718 575,501 526,846 529,102 502,699 500,181 457,790 467,680 455,060 455,700 414,895 422,242 435,611
Quick ratio 0.61 0.56 0.54 0.49 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

June 30, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($231,745K + $—K + $126,708K) ÷ $587,875K
= 0.61

The quick ratio of Extreme Networks Inc exhibits a generally stable pattern over the analyzed period, oscillating within a range from approximately 0.46 to 0.89. Initially, in September 2020, the ratio stood at 0.73 and experienced a gradual upward trend, reaching a peak of 0.89 in June 2021. This increase reflects a modest improvement in the company's ability to meet short-term obligations using liquid assets excluding inventories.

Following this peak, the ratio displayed a declining trajectory, declining to 0.66 by December 2021 and continuing a slight downward trend thereafter, reaching approximately 0.61 in December 2023. The decline indicates a reduced proportion of liquid assets relative to current liabilities during this period. Despite this decrease, the ratio remained above 0.45 in the latest measurements (September 2024 to June 2025), suggesting that the company's liquid assets continue to cover a significant portion of its short-term liabilities, though not approaching the ideal safety margin of 1.0.

Overall, the stability of the quick ratio within a sub-1.0 range reflects a cautiously manageable liquidity position. The trend of gradual decline warrants attention to the company's liquidity management and asset composition, particularly as it approaches closer to 0.45, which indicates increased reliance on less liquid current assets or potential tightening of liquidity buffers.