Extreme Networks Inc (EXTR)
Pretax margin
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -77,499 | 94,106 | 52,194 | 10,185 | -120,492 |
| Revenue | US$ in thousands | 1,117,690 | 1,295,900 | 1,103,890 | 986,853 | 925,480 |
| Pretax margin | -6.93% | 7.26% | 4.73% | 1.03% | -13.02% |
June 30, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $-77,499K ÷ $1,117,690K
= -6.93%
The pretax margin of Extreme Networks Inc has fluctuated over the past five years, with a notable improvement from 2020 to 2023 where it increased from -13.02% to 7.26%. However, in 2024, the pretax margin declined sharply to -6.93%, reflecting a negative profitability trend. This negative margin indicates that the company's expenses and losses exceeded its revenues before accounting for income taxes, which may raise concerns about its operational efficiency and cost management strategies. Extreme Networks Inc needs to closely evaluate its cost structure and revenue generation strategies to improve its pretax margin and overall financial performance.
Peer comparison
Jun 30, 2024