Extreme Networks Inc (EXTR)

Operating return on assets (Operating ROA)

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Operating income	US$ in thousands	16,949	-28,881	108,313	64,188	34,376
Total assets	US$ in thousands	1,153,220	1,042,590	1,141,710	1,068,510	1,010,090
Operating ROA		1.47%	-2.77%	9.49%	6.01%	3.40%

June 30, 2025 calculation

Operating ROA = Operating income ÷ Total assets
= $16,949K ÷ $1,153,220K
= 1.47%

The operating return on assets (ROA) for Extreme Networks Inc. has exhibited notable fluctuations over the specified period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the operating ROA stood at 3.40%, indicating a relatively modest efficiency in generating operating income from the company's asset base. The following year, this metric increased substantially to 6.01%, reflecting improved operational performance and a more effective utilization of assets. The upward trend continued into 2023, with the operating ROA reaching 9.49%, signifying a robust period of improved profitability relative to the company's assets.

However, in the fiscal year ending June 30, 2024, the operating ROA declined sharply to -2.77%, transitioning into negative territory. This decline signals a period where operating income was insufficient to cover the assets employed, potentially due to factors such as increased operational costs, lower sales, or exceptional expenses. It also indicates a deterioration in operational efficiency or profitability during this period.

By June 30, 2025, the operating ROA recovered somewhat to 1.47%, suggesting a partial rebound in operational performance but still below the levels observed in 2021 through 2023. This recovery may imply efforts to enhance efficiency or operational restructuring, though the metric remains relatively low compared to previous peaks, and the negative year denotes a period requiring strategic evaluation.

Overall, the trend of Extreme Networks Inc.'s operating ROA illustrates an initial phase of improving profitability and asset utilization, followed by a significant setback in 2024, with a partial recovery thereafter. The volatility highlights the importance of scrutiny into operational factors influencing asset efficiency and the company’s ability to sustain profitable operations over time.