Extreme Networks Inc (EXTR)

Return on equity (ROE)

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Net income (ttm)	US$ in thousands	-85,964	-6,334	80,222	94,165	78,074	58,057	48,750	44,160	44,271	49,187	39,835	23,444	1,936	-29,607	-77,431	-97,919	-126,845	-122,683	-85,263	-54,526
Total stockholders’ equity	US$ in thousands	25,282	64,962	108,184	108,482	116,752	103,192	84,567	110,603	90,343	99,263	69,599	72,325	54,468	35,136	17,925	9,911	5,398	16,400	50,927	93,849
ROE		-340.02%	-9.75%	74.15%	86.80%	66.87%	56.26%	57.65%	39.93%	49.00%	49.55%	57.24%	32.41%	3.55%	-84.26%	-431.97%	-987.98%	-2,349.85%	-748.07%	-167.42%	-58.10%

June 30, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-85,964K ÷ $25,282K
= -340.02%

Extreme Networks Inc's return on equity (ROE) has been quite volatile over the past few quarters, ranging from extremely negative values to relatively high positive percentages. The ROE was notably negative at -340.02% in June 2024, indicating that the company's net income was insufficient to cover its shareholders' equity. This negative ROE trend continued from the previous quarter when it was -9.75%.

In contrast, the company experienced a significant improvement in ROE in the preceding quarters of December 2023 and September 2023, with ROE reaching 74.15% and 86.80%, respectively. During these periods, Extreme Networks Inc generated healthy profits relative to its shareholders' equity, reflecting a strong performance.

The ROE performance in the earlier quarters, particularly in December 2022 and March 2022, was also relatively stable, with values around 50%. This indicates that the company was able to generate a moderate return for its shareholders during these periods.

However, Extreme Networks Inc faced challenges in maintaining a consistent positive ROE, as evidenced by the negative ROE values in various quarters, such as in September 2020, -987.98%, and December 2020, -431.97%.

Overall, Extreme Networks Inc's ROE shows a significant fluctuation, suggesting variability in the company's profitability and efficiency in generating returns for its shareholders. Investors and analysts may need to closely monitor the company's financial performance and strategies to assess its long-term sustainability and growth prospects.