Viavi Solutions Inc (VIAV)

Days of sales outstanding (DSO)

		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
Receivables turnover		4.15	3.75	4.25	4.22	4.08	4.14	4.21	5.47	4.78	5.35	5.57	4.56	4.95	4.71	4.86	5.10	4.67	4.40	4.41	5.09
DSO	days	87.86	97.38	85.79	86.51	89.35	88.22	86.73	66.75	76.29	68.21	65.56	80.02	73.68	77.52	75.07	71.50	78.09	83.05	82.83	71.65

June 30, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.15
= 87.86

The Days of Sales Outstanding (DSO) for Viavi Solutions Inc exhibits notable fluctuations over the analyzed period, reflecting changes in the company's accounts receivable collection efficiency. Starting at approximately 71.65 days as of September 30, 2020, DSO increased significantly to 82.83 days by December 31, 2020, and remained elevated through March 31, 2021, at 83.05 days. During the subsequent quarters, a decrease was observed, with DSO declining to 71.50 days on September 30, 2021, and slightly rising again to 75.07 days by December 31, 2021.

Throughout 2022, DSO generally fluctuated within a narrow range, reaching 80.02 days by September 30, 2022, before decreasing substantially to 65.56 days at the end of the year. The first half of 2023 saw a modest increase, with DSO at 68.21 days at the end of March, and rising slightly to 76.29 days by June. A declining trend resumed, with DSO decreasing to 66.75 days as of September 30, 2023.

However, a substantial increase is observed towards the end of 2023 and into early 2024, with DSO peaking at 86.73 days on December 31, 2023, and further rising to 88.22 days by March 31, 2024, and continuing upward through June and September 2024, reaching 89.35 days and 86.51 days, respectively. By the end of December 2024, DSO remains elevated at 85.79 days. The upward trend persists into 2025, with DSO reaching 97.38 days by March 31, 2025, and maintaining a high level at 87.86 days by June 2025.

Overall, the data indicates periods of both improvement and deterioration in the company's receivables collection effectiveness. The recent trend suggests a significant lengthening of the collection period, with DSO approaching and exceeding 86 days, and peaking over 97 days in March 2025. Such increases could imply extended credit terms, challenges in collection processes, or shifts in customer payment behavior, which may impact the company's liquidity and working capital management.