Extreme Networks Inc (EXTR)
Operating return on assets (Operating ROA)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -65,202 | 108,313 | 64,188 | 34,376 | -98,899 |
| Total assets | US$ in thousands | 1,042,590 | 1,141,710 | 1,068,510 | 1,010,090 | 979,088 |
| Operating ROA | -6.25% | 9.49% | 6.01% | 3.40% | -10.10% |
June 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-65,202K ÷ $1,042,590K
= -6.25%
Operating return on assets (Operating ROA) measures a company's ability to generate operating income from its assets. Extreme Networks Inc's Operating ROA has fluctuated over the past five years, with the highest being 9.49% in June 2023 and the lowest being -10.10% in June 2020. In the most recent period ending June 30, 2024, the Operating ROA has been recorded at -6.25%.
The negative Operating ROA in the latest period indicates that Extreme Networks Inc's operating income generated from its assets was not sufficient to cover the asset base. This could be a cause for concern as it suggests inefficiency in utilizing assets to generate operating profits. It could also indicate potential operational challenges or declining profitability.
It is important for the company to analyze the reasons behind the negative Operating ROA and take necessary steps to improve asset utilization and profitability. Regular monitoring and improvement in operating efficiency can help Extreme Networks Inc enhance its financial performance and achieve better returns on its assets in the future.
Peer comparison
Jun 30, 2024