Extreme Networks Inc (EXTR)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 56.44% | 58.24% | 57.07% | 59.29% | 55.95% |
| Operating profit margin | -5.83% | 8.36% | 5.81% | 3.48% | -10.69% |
| Pretax margin | -6.93% | 7.26% | 4.73% | 1.03% | -13.02% |
| Net profit margin | -7.69% | 6.02% | 4.01% | 0.20% | -13.71% |
Extreme Networks Inc has shown fluctuations in its profitability ratios over the past five years. The gross profit margin has ranged from 55.95% to 58.24%, with the latest figure at 56.44%. This indicates a slight decrease in the percentage of revenue remaining after deducting the cost of goods sold.
However, the operating profit margin has been less consistent, ranging from -10.69% to 8.36%. The latest figure of -5.83% shows a negative operating profit margin, indicating that the company's operating expenses exceeded its gross profit.
Similarly, the pretax margin has fluctuated between -13.02% and 7.26%, with the latest figure at -6.93%. This indicates that Extreme Networks Inc's pre-tax earnings as a percentage of total revenue remain negative, although it has improved compared to previous years.
Furthermore, the net profit margin has fluctuated between -13.71% and 6.02%, with the latest figure at -7.69%. This indicates that after accounting for all expenses, including taxes, the company has been generating negative net income relative to its total revenue, albeit with some improvement compared to previous years.
Overall, Extreme Networks Inc's profitability ratios show a mixed performance, with room for improvement in managing expenses to enhance overall profitability.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -6.25% | 9.49% | 6.01% | 3.40% | -10.10% |
| Return on assets (ROA) | -8.25% | 6.84% | 4.14% | 0.19% | -12.96% |
| Return on total capital | -29.73% | 36.63% | 18.01% | 8.92% | -24.19% |
| Return on equity (ROE) | -340.02% | 66.87% | 49.00% | 3.55% | -2,349.85% |
Extreme Networks Inc's profitability ratios have shown significant fluctuations over the past five years.
1. Operating return on assets (Operating ROA):
- Operating ROA has been volatile, with negative values in three out of the five years. This indicates that the company is struggling to generate operating profits from its assets efficiently.
2. Return on assets (ROA):
- ROA has also been inconsistent, with negative values in four out of the five years. This implies that the company is not effectively utilizing its assets to generate profits.
3. Return on total capital:
- Return on total capital has shown a wide range of values, with a significant negative value in the most recent year. This suggests that the company is not generating sufficient returns on its total capital employed.
4. Return on equity (ROE):
- ROE has exhibited extreme volatility, with a substantial negative value in the most recent year. This indicates that the company is not effectively generating returns for its equity shareholders.
Overall, Extreme Networks Inc's profitability ratios reflect a lack of consistency and efficiency in generating profits from its assets, capital, and equity. Further analysis into the company's operations and financial management may be needed to address these issues.