Extreme Networks Inc (EXTR)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 25,282 | 116,752 | 90,343 | 54,468 | 5,398 |
| ROE | -340.02% | 66.87% | 49.00% | 3.55% | -2,349.85% |
June 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-85,964K ÷ $25,282K
= -340.02%
Extreme Networks Inc has shown a volatile trend in its return on equity (ROE) over the past five years. The ROE was significantly negative at -340.02% in 2024, indicating that the company's net income was not sufficient to cover its shareholders' equity, resulting in a substantial loss.
In the previous year, 2023, the ROE was 66.87%, reflecting a healthy return generated for each dollar of shareholders' equity. This positive ROE suggests that the company was able to efficiently utilize its equity to generate profits.
Similarly, in 2022, Extreme Networks Inc reported an ROE of 49.00%, indicating a profitable year for the company with strong returns on equity.
However, in 2021, the ROE dropped to 3.55%, implying a lower profitability compared to the previous years. The company may have faced challenges in generating returns for its shareholders during this period.
The most concerning trend was observed in 2020, where the ROE plummeted to -2,349.85%. This extreme negative figure suggests a significant loss relative to shareholders' equity, indicating poor financial performance and potentially serious underlying issues within the company.
In conclusion, Extreme Networks Inc's ROE has been highly fluctuating over the past five years, ranging from extremely negative to significantly positive values. Investors should carefully monitor the company's financial performance and evaluate the factors impacting its ROE to assess its long-term sustainability and profitability.
Peer comparison
Jun 30, 2024