Viavi Solutions Inc (VIAV)

Payables 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
Payables US$ in thousands 68,800 67,200 55,700 47,400 50,400 42,500 43,800 39,800 47,200 43,700 50,200 62,000 58,300 58,300 68,000 66,900 63,200 54,800 53,500 45,200
Payables turnover 6.73 6.61 7.71 8.99 8.48 10.29 9.92 11.19 9.90 11.07 10.07 8.27 8.90 8.79 7.43 7.49 7.67 8.55 8.53 10.20

June 30, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $463,200K ÷ $68,800K
= 6.73

The payables turnover ratio for Viavi Solutions Inc exhibits notable fluctuations over the analyzed periods, reflecting changes in how efficiently the company manages its payment of liabilities to suppliers. At the start of the period, on September 30, 2020, the ratio stood at 10.20, indicating that the company paid its accounts payable approximately ten times during that fiscal quarter. This relatively high turnover suggests effective management of payable obligations and prompt payments to suppliers.

Throughout 2021, the ratio experienced a gradual decline, reaching 7.49 by September 30, 2021, and maintaining similar levels into the end of that year. The decrease implies a lengthening of the average payment period, which might be due to strategic shifts favoring extended payment terms or variations in supplier credit terms.

In early 2022, the payables turnover ratio increased again, reaching 8.79 on March 31, 2022, and slightly climbing further to 8.90 by June 30, 2022. This upward movement indicates a possible tightening of payment cycles or improved payment efficiency during this period. However, the ratio declined modestly afterward, with values around 8.27 in September 2022, suggesting some relaxation or change in payment strategies.

Toward the end of 2022 and into early 2023, the ratio increased markedly, reaching 10.07 on December 31, 2022, and 11.07 on March 31, 2023. These peaks suggest a trend toward quicker payment cycles, potentially reflecting improved liquidity, operational efficiencies, or shifts in supplier terms favoring faster payments.

Subsequently, the ratio showed a slight downturn, with a value of 9.90 at June 30, 2023, before rising again to 11.19 on September 30, 2023. The high ratios during this period indicate an environment of accelerated payments, potentially signifying stronger cash flow management.

Looking into 2024, the ratio decreased to 9.92 at year's end, then fell further to 8.48 on June 30, 2024, and rose to 8.99 on September 30, 2024. This indicates a potential stabilization or slight elongation of the payment period, possibly due to strategic or operational adjustments. In the subsequent quarters, the ratio continued to decline, reaching 7.71 on December 31, 2024, and further dropping to 6.61 in March 2025, then slightly increasing to 6.73 by June 30, 2025.

Overall, the trend reveals periods of both accelerated and elongated payment cycles, with the ratio oscillating over time. These movements can be attributed to varying working capital strategies, supplier relationships, and broader operational considerations. While periods of higher turnover suggest efficient cash management, the declines indicate strategic extensions of payment terms, potentially to optimize liquidity or manage cash flows more effectively.