Extreme Networks Inc (EXTR)

Return on assets (ROA)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Net income	US$ in thousands	-85,964	78,074	44,271	1,936	-126,845
Total assets	US$ in thousands	1,042,590	1,141,710	1,068,510	1,010,090	979,088
ROA		-8.25%	6.84%	4.14%	0.19%	-12.96%

June 30, 2024 calculation

ROA = Net income ÷ Total assets
= $-85,964K ÷ $1,042,590K
= -8.25%

Extreme Networks Inc's return on assets (ROA) has been fluctuating over the past five years. In the most recent fiscal year ending June 30, 2024, the ROA was -8.25%, indicating a negative return on the company's assets. This suggests that the company's assets are not generating positive returns and may be underperforming.

In the previous fiscal year, ending June 30, 2023, the ROA was 6.84%, showing a significant improvement compared to the previous year. This indicates that the company was able to generate a positive return on its assets, reflecting efficient asset utilization.

In the fiscal year ending June 30, 2022, the ROA was 4.14%, also demonstrating a positive return on assets. This suggests that the company was able to effectively utilize its assets to generate profits.

For the fiscal year ending June 30, 2021, the ROA was 0.19%, indicating a marginal positive return on assets. This implies that the company's asset utilization was relatively effective in generating a small profit.

In the fiscal year ending June 30, 2020, the ROA was -12.96%, showing a significant decline compared to the previous year. This negative ROA indicates that the company's assets were not generating sufficient returns to cover its costs and resulted in a loss.

Overall, Extreme Networks Inc's ROA has been volatile, with periods of positive and negative returns on assets. It is important for the company to focus on improving asset utilization and profitability to ensure sustainable financial performance in the future.