Extreme Networks Inc (EXTR)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	25,282	116,752	90,343	54,468	5,398
Debt-to-equity ratio		7.05	1.61	2.99	5.80	73.10

June 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $178,265K ÷ $25,282K
= 7.05

The debt-to-equity ratio of Extreme Networks Inc has shown significant fluctuations over the past five years, ranging from 73.10 in 2020 to 1.61 in 2023. This ratio measures the proportion of the company's total liabilities relative to its shareholders' equity. A high debt-to-equity ratio indicates that the company relies heavily on debt financing, whereas a low ratio suggests a more conservative capital structure.

In the latest period ending June 30, 2024, the debt-to-equity ratio stands at 7.05, indicating that the company has a higher level of debt compared to shareholder equity. This may raise concerns about the company's financial leverage and ability to meet its debt obligations. It is important for investors and stakeholders to monitor this ratio over time to assess the company's financial health and risk profile.