Extreme Networks Inc (EXTR)

Debt-to-assets ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Long-term debt	US$ in thousands	178,265	187,591	270,570	315,865	394,585
Total assets	US$ in thousands	1,042,590	1,141,710	1,068,510	1,010,090	979,088
Debt-to-assets ratio		0.17	0.16	0.25	0.31	0.40

June 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $178,265K ÷ $1,042,590K
= 0.17

The debt-to-assets ratio of Extreme Networks Inc has shown a decreasing trend over the past five years, indicating improved solvency and financial stability. The ratio decreased from 0.40 in 2020 to 0.17 in 2024. This suggests that the company has reduced its reliance on debt financing in relation to its total assets, which can be viewed positively by investors and creditors.

A lower debt-to-assets ratio implies that Extreme Networks Inc has a higher proportion of assets financed through equity rather than debt. This can potentially reduce the company's financial risk and interest payment obligations. The decreasing trend in the ratio indicates that the company has been effectively managing its debt levels and possibly strengthening its financial position over the years.

Overall, the declining debt-to-assets ratio of Extreme Networks Inc reflects a positive financial health and prudent debt management strategy.