Extreme Networks Inc (EXTR)

Financial leverage ratio

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	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
Total assets	US$ in thousands	1,153,220	1,073,080	1,080,940	1,056,520	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
Total stockholders’ equity	US$ in thousands	65,584	71,705	51,208	32,721	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
Financial leverage ratio		17.58	14.97	21.11	32.29	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

June 30, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,153,220K ÷ $65,584K
= 17.58

The financial leverage ratio of Extreme Networks Inc. demonstrates significant fluctuations over the reviewed period, indicating varying levels of financial leverage and debt utilization.

From September 30, 2020, to March 31, 2021, the ratio shows a dramatic decline, decreasing from 96.81 to 27.14. This sharp reduction suggests a substantial deleveraging effort during this period, likely due to debt repayment or restructuring, leading to a lower reliance on debt financing relative to equity or assets.

Between March 31, 2021, and March 31, 2022, the ratio stabilizes at relatively lower levels, ranging from 10.32 to 12.56, reflecting a period of moderate leverage. During this phase, the company maintained a conservative leverage stance, which may indicate an emphasis on reducing financial risk or prudent capital management.

However, starting from June 30, 2022, the leverage ratio begins to increase again, reaching 16.71 by March 31, 2024. This upward trend suggests a renewed utilization of debt financing, possibly to fund expansion, acquisitions, or other strategic initiatives.

The most notable change occurs between June 30, 2024, and September 30, 2024, where the ratio peaks at 32.29. This spike indicates a significant increase in leverage, potentially pointing to increased borrowing or debt acquisition within a short timeframe.

Subsequently, the ratio shows a declining trend, reaching 21.11 as of December 31, 2024, and further decreasing to 14.97 by March 31, 2025. This decline suggests a partial deleveraging phase or debt repayment, reducing financial risk and improving the company's leverage profile.

Overall, the data indicates that Extreme Networks Inc. experienced periods of both aggressive leveraging and deleveraging, reflecting strategic adjustments in capital structure in response to market conditions, operational needs, or financial strategy shifts over the examined timeframe.