Viavi Solutions Inc (VIAV)

Working capital turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Revenue	US$ in thousands	1,000,400	1,106,100	1,292,400	1,198,900	1,136,300
Total current assets	US$ in thousands	876,500	945,000	1,005,100	1,112,100	913,600
Total current liabilities	US$ in thousands	247,100	343,500	369,300	747,400	232,800
Working capital turnover		1.59	1.84	2.03	3.29	1.67

June 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,000,400K ÷ ($876,500K – $247,100K)
= 1.59

Viavi Solutions Inc's working capital turnover has shown a declining trend over the past five years. The ratio decreased from 3.29 in 2021 to 1.59 in 2024, which indicates that the company may be managing its working capital less efficiently. A lower working capital turnover ratio suggests that Viavi Solutions Inc is generating less revenue relative to its working capital investment. This could imply that the company is not effectively utilizing its current assets to generate sales revenue. Further analysis is warranted to understand the underlying reasons for this decline and to identify potential areas for improvement in working capital management.