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.