Viavi Solutions Inc (VIAV)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	424,500	435,700	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	471,000	479,200	481,500	486,200
Inventory	US$ in thousands	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	83,300	87,000	91,900	99,400
Inventory turnover		4.40	4.21	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	5.65	5.51	5.24	4.89

June 30, 2024 calculation

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

The inventory turnover ratio of Viavi Solutions Inc has shown variability over the past few years, ranging from 3.77 to 5.65. The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a certain period. A higher inventory turnover ratio indicates that the company is managing its inventory efficiently and quickly turning over its stock into sales.

In the most recent period, the inventory turnover ratio was 4.40, which indicates that Viavi Solutions Inc sold and replaced its inventory approximately 4.40 times during the period. It is important to note that a consistent and relatively high inventory turnover ratio is generally favorable, as it suggests effective inventory management and potentially lower carrying costs.

Analyzing the trend of the inventory turnover ratio over time can provide insights into the company's operational efficiency, demand forecasting, and inventory management practices. Investors and stakeholders typically look for stable or improving inventory turnover ratios as they indicate effective utilization of resources and potential profitability.