Extreme Networks Inc (EXTR)

Debt-to-capital ratio

		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
Long-term debt	US$ in thousands	178,265	180,597	182,931	185,261	187,591	198,188	222,669	231,640	270,570	279,514	288,458	297,379	315,865	322,402	328,941	335,461	394,585	399,704	348,916	353,406
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
Debt-to-capital ratio		0.88	0.74	0.63	0.63	0.62	0.66	0.72	0.68	0.75	0.74	0.81	0.80	0.85	0.90	0.95	0.97	0.99	0.96	0.87	0.79

June 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $178,265K ÷ ($178,265K + $25,282K)
= 0.88

The debt-to-capital ratio of Extreme Networks Inc has shown fluctuations over the past few quarters. The trend indicates an increase in leverage over the last few periods, with the ratio ranging from 0.63 to 0.99.

In recent quarters, the debt-to-capital ratio has been relatively high, exceeding 0.80. This suggests that a significant portion of the company's capital structure is comprised of debt. Investors and creditors may view this as a sign of increased financial risk and potential challenges in meeting debt obligations.

It is important for Extreme Networks Inc to carefully monitor and manage its debt levels to ensure it maintains a healthy balance between debt and equity in its capital structure. High levels of debt can impact the company's financial flexibility and ability to invest in growth opportunities. Continued monitoring of the debt-to-capital ratio will be crucial for assessing the company's financial health and risk profile.