Extreme Networks Inc (EXTR)

Quick ratio

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 US$ in thousands 156,699 151,007 221,403 224,434 234,826 202,996 202,521 198,344 194,522 166,566 173,548 191,349 246,894 203,139 183,969 193,116 193,872 196,350 140,414 131,369
Short-term investments US$ in thousands — — — — — 92 808 1,338 1,314 832 — — — — — — — — — 29,705
Receivables US$ in thousands 89,518 94,438 112,047 131,511 182,045 158,637 152,050 158,727 184,097 162,967 133,255 129,611 156,476 130,558 128,242 123,637 122,727 96,212 159,790 152,277
Total current liabilities US$ in thousands 517,588 528,302 548,966 528,718 575,501 526,846 529,102 502,699 500,181 457,790 467,680 455,060 455,700 414,895 422,242 435,611 397,821 374,529 422,957 411,451
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

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 fluctuated over the time periods provided in the table. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of less than 1 indicates that the company may have difficulty meeting its short-term liabilities.

Looking at the data, we can see that the quick ratio has generally been below 1, which may raise concerns about the company's liquidity. The quick ratio ranged from as low as 0.46 to a high of 0.89 over the periods mentioned.

In analyzing the trend, we observe that the quick ratio exhibited some volatility but generally stayed within a range of 0.46 to 0.89. It increased from 0.46 in March 2024 to 0.61 in December 2023, indicating an improvement in the company's ability to cover its short-term liabilities. However, it declined to 0.48 as of June 30, 2024, which may indicate a decline in liquidity.

Overall, while the quick ratio provides insights into Extreme Networks Inc's short-term liquidity position, it is important to consider other financial metrics and factors to have a comprehensive understanding of the company's financial health.