Viavi Solutions Inc (VIAV)

Inventory turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cost of revenue	US$ in thousands	424,500	467,300	518,900	484,500	471,000
Inventory	US$ in thousands	96,500	116,100	110,100	94,900	83,300
Inventory turnover		4.40	4.02	4.71	5.11	5.65

June 30, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $424,500K ÷ $96,500K
= 4.40

Viavi Solutions Inc's inventory turnover has been fluctuating over the past five years. The inventory turnover ratio represents how many times a company's inventory is sold and replaced over a period. A higher inventory turnover ratio indicates that the company is selling its inventory more efficiently.

In 2024, Viavi Solutions Inc's inventory turnover ratio is 4.40, which suggests that the company's inventory is turning over approximately 4.40 times during the year. Compared to the prior year, the inventory turnover has increased from 4.02 in 2023 to 4.40 in 2024, indicating an improvement in inventory management efficiency.

However, when looking at the trend over the five-year period, there has been a general decrease in inventory turnover from 5.65 in 2020 to 4.40 in 2024. This could imply that Viavi Solutions Inc is holding onto inventory for a longer period before selling it, which may tie up working capital and increase holding costs.

Overall, while the recent increase in inventory turnover is a positive sign, Viavi Solutions Inc may need to focus on efficiently managing its inventory levels to improve its overall performance.