Viavi Solutions Inc (VIAV)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	463,200	443,900	429,400	425,900	427,300	437,200	434,400	445,400	467,300	483,900	505,700	512,500	518,900	512,700	505,500	501,000	484,500	468,500	456,500	460,900
Inventory	US$ in thousands	117,900	116,200	92,800	93,200	96,500	103,400	115,100	113,500	116,100	125,900	120,300	110,600	110,100	113,900	114,400	102,800	94,900	90,600	88,200	87,300
Inventory turnover		3.93	3.82	4.63	4.57	4.43	4.23	3.77	3.92	4.02	3.84	4.20	4.63	4.71	4.50	4.42	4.87	5.11	5.17	5.18	5.28

June 30, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $463,200K ÷ $117,900K
= 3.93

The inventory turnover ratio of Viavi Solutions Inc. demonstrates notable fluctuations over the observed period. Starting at 5.28 times as of September 30, 2020, the ratio experienced a gradual decline, reaching a low of 3.77 times by December 31, 2022. This downward trend indicates a reduction in the efficiency with which inventory is being sold and replaced, potentially suggesting either increased inventory holding or decreased sales efficiency.

From the end of 2022 through mid-2023, the ratio shows signs of stabilization and modest recovery, rising to 4.23 times by March 31, 2024, and reaching 4.63 times by December 31, 2024. This upward movement suggests an improvement in inventory management or sales performance, reflecting a higher frequency of inventory turnover.

However, the ratio then declined slightly to 3.82 times by March 31, 2025, before increasing again to 3.93 times by June 30, 2025. The cyclical pattern of declines and partial recoveries indicates ongoing variability in inventory management efficiency.

Overall, the trend of the inventory turnover ratio across the period suggests periods of diminished efficiency followed by partial recoveries, with the ratio generally remaining within a range of approximately 3.77 to 5.28 times. This pattern may reflect strategic adjustments, market conditions, or changes in product demand influencing inventory management practices.