Viavi Solutions Inc (VIAV)

Payables 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
Payables	US$ in thousands	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	53,000	45,200	48,900	60,900
Payables turnover		8.42	10.25	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	8.89	10.60	9.85	7.98

June 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $424,500K ÷ $50,400K
= 8.42

The payables turnover ratio of Viavi Solutions Inc has been fluctuating over the recent quarters, with values ranging from 7.43 to 11.19. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently within a particular period.

Viavi Solutions Inc's payables turnover ratio increased significantly from 7.43 in Q4 2021 to 11.19 in Q3 2023, showing that the company was paying its suppliers more frequently during this period. This could be a positive sign, indicating efficient management of accounts payable and potentially improved relationships with suppliers.

However, the ratio decreased to 8.42 in Q2 2024, suggesting a reversal in the trend of more frequent payments to suppliers. It is important for the company to analyze the reasons behind this decline and ensure that it maintains an optimal balance in managing payables.

Overall, the fluctuation in Viavi Solutions Inc's payables turnover ratio highlights the importance of monitoring working capital management closely to ensure efficient operations and sustainable supplier relationships.