Viavi Solutions Inc (VIAV)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,084,300 | 1,045,800 | 1,007,000 | 990,700 | 1,000,400 | 1,012,000 | 1,013,800 | 1,043,800 | 1,106,100 | 1,177,800 | 1,245,500 | 1,275,800 | 1,292,400 | 1,268,000 | 1,255,900 | 1,241,000 | 1,198,900 | 1,154,600 | 1,107,400 | 1,121,200 |
| Total current assets | US$ in thousands | 885,200 | 835,400 | 880,400 | 864,000 | 876,500 | 867,600 | 965,300 | 916,100 | 945,000 | 1,003,000 | 911,900 | 950,800 | 1,005,100 | 1,044,000 | 1,180,600 | 1,332,600 | 1,112,100 | 1,080,000 | 1,046,400 | 961,600 |
| Total current liabilities | US$ in thousands | 589,700 | 544,700 | 248,000 | 232,800 | 247,100 | 227,800 | 312,100 | 310,900 | 343,500 | 412,600 | 328,700 | 333,200 | 369,300 | 259,700 | 285,100 | 292,500 | 705,000 | 273,100 | 263,600 | 227,500 |
| Working capital turnover | 3.67 | 3.60 | 1.59 | 1.57 | 1.59 | 1.58 | 1.55 | 1.72 | 1.84 | 1.99 | 2.14 | 2.07 | 2.03 | 1.62 | 1.40 | 1.19 | 2.94 | 1.43 | 1.41 | 1.53 |
June 30, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,084,300K ÷ ($885,200K – $589,700K)
= 3.67
The working capital turnover ratio of Viavi Solutions Inc. exhibits significant fluctuations over the analyzed period from September 2020 through June 2025. Initially, the ratio was relatively moderate at 1.53 in September 2020, and it experienced a slight decline to 1.41 by the end of 2020, indicating a modest efficiency in utilizing working capital to generate sales.
Throughout 2021, the ratio demonstrated variable movement, decreasing sharply to 1.19 by September 2021, which could suggest a temporary decline in operational efficiency or an increase in working capital relative to sales. However, the ratio recovered somewhat towards the end of the year, reaching approximately 1.40 by December 2021, and continued to improve into 2022, rising to 1.62 in March and further to 2.03 in June. This upward trend persisted through 2022, with the ratio stabilizing around 2.07 to 2.14 by the end of the year, indicating enhanced efficiency in managing working capital relative to sales.
In 2023, the ratio displayed a decreasing trend from 1.99 in March to a low of 1.55 in December, then saw a modest recovery to 1.58 in March 2024, with subsequent slight increases and stabilizations around 1.59 through mid-2024. The recent months show the ratio maintaining within a narrow range, suggesting a steady but comparatively moderate utilization of working capital in relation to sales.
Remarkably, the ratio experiences a substantial spike in late 2024 and into mid-2025, reaching 3.60 in March 2025 and further elevating to 3.67 by June 2025. This sharp increase signifies a notable improvement in working capital turnover, implying the company has become significantly more efficient in generating sales from its working capital resources during this period.
Overall, the working capital turnover ratio of Viavi Solutions Inc. reflects periods of both operational efficiency and volatility. The recent upward surge indicates improved management of working capital relative to sales, potentially attributable to strategic operational changes, restructuring, or market conditions favoring higher sales generation with stable or optimized working capital levels. Conversely, the earlier variability suggests periods of adjustment or challenges in maintaining consistent working capital efficiency.
Peer comparison
Jun 30, 2025