Viavi Solutions Inc (VIAV)

Working capital turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Revenue	US$ in thousands	1,084,300	1,000,400	1,106,100	1,292,400	1,198,900
Total current assets	US$ in thousands	885,200	876,500	945,000	1,005,100	1,112,100
Total current liabilities	US$ in thousands	589,700	247,100	343,500	369,300	747,400
Working capital turnover		3.67	1.59	1.84	2.03	3.29

June 30, 2025 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,084,300K ÷ ($885,200K – $589,700K)
= 3.67

The working capital turnover ratio for Viavi Solutions Inc. demonstrates notable fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. Specifically, the ratio was 3.29 in 2021, indicating a relatively efficient utilization of working capital to generate sales during that year. However, this ratio declined significantly in 2022 to 2.03 and further decreased to 1.84 in 2023, reflecting a diminishing efficiency in converting working capital into revenue.

The downward trend continued into 2024, with the ratio reaching 1.59, suggesting that the company's ability to leverage working capital for sales generation further weakened. This sustained decrease might point to potential challenges in operational efficiency, inventory management, or accounts receivable and payable cycles, which can impact the overall effectiveness of working capital utilization.

Conversely, in 2025, the ratio experienced a sharp increase to 3.67, surpassing even the 2021 level. This upward movement indicates an improvement in the company's efficiency in utilizing working capital for sales, potentially driven by better operational management, reduced working capital needs, or strategic initiatives aimed at optimizing cash flow and working capital components.

Overall, the period reflects a volatility in working capital turnover, with a significant decline observed in the first half of the period followed by a marked recovery in the final year. This pattern suggests that the company's management may have implemented measures to improve operational efficiency or that external factors influencing working capital management have shifted over time.