Extreme Networks Inc (EXTR)
Operating return on assets (Operating ROA)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 16,949 | -20,614 | -79,039 | -81,388 | -40,772 | 36,067 | 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 |
| Total assets | US$ in thousands | 1,153,220 | 1,073,080 | 1,080,940 | 1,056,520 | 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 |
| Operating ROA | 1.47% | -1.92% | -7.31% | -7.70% | -3.91% | 3.32% | 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% |
June 30, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $16,949K ÷ $1,153,220K
= 1.47%
The analysis of Extreme Networks Inc.’s operating return on assets (ROA) over the period from September 30, 2020, to June 30, 2025, reveals significant fluctuations indicating variability in operational efficiency and profitability.
Initially, at the end of September 2020, the company experienced a negative operating ROA of -6.96%, suggesting that operations were not generating sufficient returns to cover asset costs. This negative trend persisted through December 2020, albeit at slightly improved levels (-4.84%). During this phase, the company was likely facing operational challenges or industry headwinds impacting asset productivity.
A notable turnaround occurred by March 31, 2021, when the operating ROA shifted to a positive value of 0.39%, indicating the beginning of operational recovery or improved asset utilization. This positive direction continued through subsequent quarters, with the most notable improvement evident by September 30, 2021, at 5.23%. The upward trajectory persisted, reaching 6.43% at the end of December 2021, and further increasing to 6.96% by March 31, 2022.
From mid-2022 through September 2023, the operating ROA maintained a relatively stable and positive trend, peaking at 11.46% on September 30, 2023. This period reflects sustained operational profitability and effective asset deployment. However, the latter part of 2023 saw a decrease to 9.95% at year-end.
Moving into 2024, the operating ROA declined sharply, turning negative by March 31, 2024 (-3.91%), and continuing to decline through the subsequent quarters, reaching -7.70% by September 30, 2024. The negative values indicate a deterioration in operational efficiency, possibly due to increased costs, reduced revenues, or strategic challenges.
The trend continued into early 2025, with the operating ROA remaining negative but showing signs of improvement as it approaches -1.92% in March 2025 and turning positive again at 1.47% by June 30, 2025. This suggests a potential partial recovery or operational adjustments aimed at restoring profitability through asset utilization.
Overall, the company's operating ROA exhibits a pattern of initial struggles, subsequent recovery, a period of relative stability and growth, followed by renewed decline, and a recent tentative rebound. The fluctuations underscore shifts in operational performance, influenced by internal strategic factors and external market conditions impacting asset efficiency and profitability.
Peer comparison
Jun 30, 2025