Viavi Solutions Inc (VIAV)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	1,000,400	1,012,000	1,013,800	1,043,800	1,106,100	1,177,800	1,245,500	1,275,800	1,292,400	1,268,000	1,255,900	1,241,000	1,198,900	1,154,600	1,107,400	1,121,200	1,136,300	1,159,400	1,168,400	1,161,600
Property, plant and equipment	US$ in thousands	228,200	231,900	236,500	239,000	243,000	247,200	244,800	231,700	228,900	221,200	213,300	203,100	196,000	180,000	181,700	175,400	172,500	171,100	173,500	170,500
Fixed asset turnover		4.38	4.36	4.29	4.37	4.55	4.76	5.09	5.51	5.65	5.73	5.89	6.11	6.12	6.41	6.09	6.39	6.59	6.78	6.73	6.81

June 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,000,400K ÷ $228,200K
= 4.38

The fixed asset turnover ratio for Viavi Solutions Inc has shown a generally positive trend over the past periods, increasing from 4.29 in December 2023 to 4.38 in June 2024. This indicates that the company is generating more revenue for each dollar invested in fixed assets.

The company's fixed asset turnover has remained consistently above 4, reaching a peak of 6.81 in December 2019. This suggests that Viavi Solutions Inc efficiently utilizes its fixed assets to generate sales revenue.

The relatively high fixed asset turnover ratios signify the company's effective management of its fixed assets to drive productivity and revenue generation. Investors and stakeholders may view a consistently high fixed asset turnover ratio positively as it indicates operational efficiency and effective asset utilization. However, it's important to consider other factors in conjunction with this ratio to get a holistic view of the company's financial health.