Viavi Solutions Inc (VIAV)

Payables turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cost of revenue	US$ in thousands	468,000	424,500	467,300	518,900	484,500
Payables	US$ in thousands	68,800	50,400	47,200	58,300	63,200
Payables turnover		6.80	8.42	9.90	8.90	7.67

June 30, 2025 calculation

Payables turnover = Cost of revenue ÷ Payables
= $468,000K ÷ $68,800K
= 6.80

The payables turnover ratio of Viavi Solutions Inc has exhibited notable fluctuations over the four-year period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the ratio stood at 7.67, indicating that the company paid its accounts payable approximately 7.67 times during the fiscal year. This ratio increased significantly in the following year, reaching 8.90 as of June 30, 2022, which suggests an improvement in the company’s efficiency in settling its payables or a reduction in the accounts payable balance relative to cost of goods sold or purchases.

The upward trend continued into June 30, 2023, with the ratio reaching 9.90, the highest within the observed period. This peak indicates an even more rapid turnover of payables, implying either quicker payments, improved cash flow management, or possibly reduced reliance on extending payment terms.

However, in the subsequent year, the ratio declined to 8.42 as of June 30, 2024. While still higher than the 2021 figure, this decrease suggests a slowdown in payable turnover, which could imply a lengthening of payment periods, changes in purchasing habits, or adjustments in supplier agreements.

By June 30, 2025, the ratio further decreased to 6.80, marking a significant reduction from the prior year’s figure and positioning below the 2021 level. This downward trend indicates a further extension in the average payment period, potentially reflecting strategic changes in vendor negotiations, cash management practices, or operational factors affecting payables.

Overall, the payables turnover ratio demonstrates a pattern of increasing efficiency from 2021 through 2023, followed by a period of gradual decline in the subsequent years. The fluctuations highlight shifts in the company’s payment strategies, working capital management, or operational conditions impacting accounts payable management.