Extreme Networks Inc (EXTR)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	-65,202	21,646	113,698	126,816	108,313	80,871	68,599	63,220	64,188	71,301	65,142	52,800	34,376	3,702	-45,806	-66,755	-98,899	-98,001	-61,899	-41,912
Total assets	US$ in thousands	1,042,590	1,085,470	1,142,660	1,106,510	1,141,710	1,068,400	1,062,180	1,057,780	1,068,510	1,024,840	1,012,800	1,008,800	1,010,090	953,676	945,837	959,494	979,088	973,452	1,014,650	1,051,790
Operating ROA		-6.25%	1.99%	9.95%	11.46%	9.49%	7.57%	6.46%	5.98%	6.01%	6.96%	6.43%	5.23%	3.40%	0.39%	-4.84%	-6.96%	-10.10%	-10.07%	-6.10%	-3.98%

June 30, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-65,202K ÷ $1,042,590K
= -6.25%

Operating return on assets (ROA) measures how efficiently a company is generating operating profits relative to its total assets. Extreme Networks Inc's operating ROA has varied over the past few quarters, ranging from negative values to positive percentages, indicating fluctuations in the company's operational performance.

The trend analysis of Extreme Networks Inc's operating ROA reveals that the metric has been volatile, with significant changes observed from quarter to quarter. In the most recent quarter, the operating ROA stood at -6.25%, reflecting a decline in operational efficiency compared to the previous quarter when it was 1.99%.

Over the last few quarters, Extreme Networks Inc's operating ROA has shown a general upward trend, reaching a peak of 11.46% in September 2023. This improvement suggests that the company was able to generate higher operating profits relative to its assets during that period.

However, the operating ROA started to decline in the following quarters, indicating a decrease in operational efficiency. The company experienced a downturn in its operating performance, with the metric dropping to -10.10% in December 2019.

Overall, Extreme Networks Inc's operating ROA has shown fluctuations, signaling varying levels of efficiency in utilizing its assets to generate operating income. Further analysis of the factors influencing these fluctuations is necessary to understand the company's operational performance more comprehensively.