Extreme Networks Inc (EXTR)

Financial leverage 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
Total assets	US$ in thousands	1,042,590	1,085,470	1,142,660	1,106,510	1,141,710	1,068,400	1,062,180	1,057,780	1,068,510	1,024,840	1,012,800	1,008,800	1,010,090	953,676	945,837	959,494	979,088	973,452	1,014,650	1,051,790
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
Financial leverage ratio		41.24	16.71	10.56	10.20	9.78	10.35	12.56	9.56	11.83	10.32	14.55	13.95	18.54	27.14	52.77	96.81	181.38	59.36	19.92	11.21

June 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,042,590K ÷ $25,282K
= 41.24

The financial leverage ratio of Extreme Networks Inc has shown fluctuating trends over the past few quarters. The ratio increased significantly from 11.21 in March 2020 to a peak of 181.38 in September 2020, indicating a high level of financial leverage during that period. Subsequently, the ratio declined steadily to 10.20 in September 2023, suggesting a reduction in the company's reliance on debt financing.

However, the ratio increased again to 41.24 in June 2024, reflecting a higher level of financial leverage compared to the previous quarters. It is important to note that a high financial leverage ratio can indicate a higher proportion of debt in the company's capital structure, which may lead to increased financial risk.

Overall, Extreme Networks Inc's financial leverage ratio has shown fluctuations, which may warrant further investigation into the company's debt management and capital structure decisions to assess its financial health and risk profile.