Extreme Networks Inc (EXTR)

Return on assets (ROA)

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Net income	US$ in thousands	-7,467	-85,964	78,074	44,271	1,936
Total assets	US$ in thousands	1,153,220	1,042,590	1,141,710	1,068,510	1,010,090
ROA		-0.65%	-8.25%	6.84%	4.14%	0.19%

June 30, 2025 calculation

ROA = Net income ÷ Total assets
= $-7,467K ÷ $1,153,220K
= -0.65%

The analysis of Extreme Networks Inc.'s return on assets (ROA) over the listed periods indicates a significant variability in the company's profitability relative to its total assets. As of June 30, 2021, the ROA was recorded at approximately 0.19%, reflecting a very modest level of efficiency in generating net income from assets. This figure improved notably by June 30, 2022, reaching around 4.14%, suggesting an increase in profitability and more effective utilization of assets. The upward trend continued into June 30, 2023, with the ROA increasing further to approximately 6.84%, which indicates an improving operational performance and profitability within that fiscal year.

However, the subsequent period reveals a decline, with the ROA turning negative at -8.25% as of June 30, 2024. This negative result signifies that the company incurred net losses relative to its asset base during that period, potentially due to operational challenges, increased expenses, or decreased revenues. The trend of profitability decline persisted into June 30, 2025, with the ROA slightly improving to -0.65%, though still reflecting unprofitable asset utilization compared to the earlier years.

Overall, the data reflects a period of initial growth and improved efficiency in generating profits from assets, followed by a downturn resulting in losses. The negative ROA figures in the most recent years indicate challenges in sustaining profitability, highlighting a potential concern for operational performance and asset management.