Viavi Solutions Inc (VIAV)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | 4.08 | 4.14 | 4.21 | 4.69 | 4.19 | — | 4.79 | — | 4.52 | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Working capital turnover | 1.59 | 1.58 | 1.55 | 1.72 | 1.84 | 1.99 | 2.14 | 2.07 | 2.03 | 1.62 | 1.40 | 1.19 | 3.29 | 1.43 | 1.41 | 1.53 | 1.67 | 1.72 | 1.69 | 1.84 |
Viavi Solutions Inc's activity ratios, which provide insights into how effectively the company is managing its assets and operating cycle, show the following trends:
1. Inventory Turnover:
- Viavi Solutions Inc's inventory turnover has fluctuated over the periods but generally stayed within the range of 4 to 5 times per year.
- The ratio indicates that the company is effectively selling and replenishing its inventory, with a slight decline in more recent periods.
2. Receivables Turnover:
- While data for some periods are missing, Viavi Solutions Inc's receivables turnover appears to be relatively stable around 4 to 5 times per year based on available information.
- This suggests that the company is efficient in collecting revenue from its customers.
3. Payables Turnover:
- Viavi Solutions Inc's payables turnover has varied over time, but the company generally takes around 8 to 11 days to pay its suppliers.
- A higher turnover ratio indicates that the company is managing its payables efficiently, although there was variability in this ratio in recent periods.
4. Working Capital Turnover:
- The working capital turnover ratio has shown fluctuations, with highs and lows observed over the periods.
- The ratio indicates how efficiently Viavi Solutions Inc is using its working capital to generate sales, with a declining trend in more recent periods.
Overall, based on the activity ratios, Viavi Solutions Inc demonstrates efficiency in managing its inventory and receivables, but there may be opportunities to further optimize its payables management and working capital utilization to enhance overall operational performance.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 82.97 | 86.62 | 96.71 | 93.01 | 90.68 | 94.96 | 86.83 | 78.77 | 77.45 | 81.09 | 82.60 | 74.89 | 71.49 | 70.58 | 70.52 | 69.14 | 64.55 | 66.27 | 69.66 | 74.62 |
| Days of sales outstanding (DSO) | days | 89.35 | 88.22 | 86.73 | 77.80 | 87.08 | — | 76.25 | — | 80.72 | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 43.34 | 35.60 | 36.80 | 32.62 | 36.87 | 32.96 | 36.23 | 44.16 | 41.01 | 41.50 | 49.10 | 48.74 | 47.61 | 42.69 | 42.78 | 35.80 | 41.07 | 34.43 | 37.07 | 45.72 |
Viavi Solutions Inc's activity ratios indicate the efficiency of the company in managing its inventory, accounts receivable, and accounts payable.
1. Days of Inventory on Hand (DOH):
- The average inventory turnover period over the past quarters has been gradually increasing, indicating that the company is taking longer to sell its inventory.
- The trend suggests that Viavi Solutions may be facing challenges in managing its inventory levels efficiently, potentially leading to higher carrying costs and lower liquidity.
2. Days of Sales Outstanding (DSO):
- The data shows inconsistency in the DSO figures with missing values for certain quarters, making it challenging to draw a conclusive trend analysis.
- However, the higher DSO values imply that Viavi Solutions is taking more time to collect payments from its customers, which could have a negative impact on cash flows and working capital management.
3. Number of Days of Payables:
- The number of days of payables has shown fluctuations over the quarters, with some variability in payment periods to suppliers.
- The decreasing trend in the number of days of payables could indicate that the company is settling its payables more quickly, potentially impacting cash flow availability and liquidity.
Overall, these activity ratios suggest that Viavi Solutions Inc may need to focus on improving inventory management, speeding up receivables collection, and strategically managing payables to enhance operational efficiency and optimize working capital utilization.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 4.38 | 4.36 | 4.29 | 4.37 | 4.55 | 4.76 | 5.09 | 5.51 | 5.65 | 5.73 | 5.89 | 6.11 | 6.12 | 6.41 | 6.09 | 6.39 | 6.59 | 6.78 | 6.73 | 6.81 |
| Total asset turnover | 0.58 | 0.58 | 0.55 | 0.58 | 0.60 | 0.61 | 0.68 | 0.72 | 0.71 | 0.68 | 0.62 | 0.57 | 0.61 | 0.60 | 0.58 | 0.61 | 0.64 | 0.65 | 0.63 | 0.64 |
Viavi Solutions Inc's long-term activity ratios indicate the efficiency of the company in utilizing its assets to generate sales.
1. Fixed asset turnover:
- Viavi Solutions Inc's fixed asset turnover ratio has been consistently high, ranging from 4.29 to 6.81 over the past few quarters. This indicates that the company is effectively using its fixed assets to generate revenue.
- The increasing trend in the fixed asset turnover ratio suggests that the company is becoming more efficient in utilizing its fixed assets over time.
- A high fixed asset turnover ratio signifies that Viavi Solutions Inc is efficiently managing its investments in long-term assets such as property, plant, and equipment to generate sales.
2. Total asset turnover:
- The total asset turnover ratio for Viavi Solutions Inc has been relatively stable, ranging between 0.55 and 0.72 in recent quarters.
- Although the total asset turnover ratio is lower compared to the fixed asset turnover ratio, it indicates that the company is generating sales relative to its total assets.
- A stable total asset turnover ratio suggests that Viavi Solutions Inc is maintaining consistency in efficiently utilizing its total assets to generate revenue.
In conclusion, Viavi Solutions Inc's long-term activity ratios reflect the company's strong efficiency in utilizing both fixed and total assets to generate sales. The overall trend indicates that the company is effectively managing its assets to drive revenue growth.