Viavi Solutions Inc (VIAV)
Fixed asset turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,000,400 | 1,106,100 | 1,292,400 | 1,198,900 | 1,136,300 |
| Property, plant and equipment | US$ in thousands | 228,200 | 243,000 | 228,900 | 196,000 | 172,500 |
| Fixed asset turnover | 4.38 | 4.55 | 5.65 | 6.12 | 6.59 |
June 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,000,400K ÷ $228,200K
= 4.38
The fixed asset turnover ratio for Viavi Solutions Inc has shown a declining trend over the last five years. From a peak of 6.59 in June 30, 2020, the ratio has decreased to 4.38 in June 30, 2024. This indicates that the company is generating less revenue for every dollar invested in fixed assets. The decreasing trend may suggest potential inefficiencies in asset utilization or a need for greater capital efficiency. It would be advisable for the company to investigate the reasons behind this decline and consider implementing strategies to improve its fixed asset turnover in order to enhance overall operational efficiency and profitability.
Peer comparison
Jun 30, 2024