Viavi Solutions Inc (VIAV)

Working capital 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
Revenue (ttm)	US$ in thousands	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	1,136,300	1,159,400	1,168,400	1,161,600
Total current assets	US$ in thousands	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	913,600	914,000	954,800	914,200
Total current liabilities	US$ in thousands	247,100	227,800	312,100	310,900	343,500	412,600	328,700	333,200	369,300	259,700	285,100	292,500	747,400	273,100	263,600	227,500	232,800	239,100	261,900	282,500
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

June 30, 2024 calculation

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

Viavi Solutions Inc's working capital turnover has fluctuated over the past several quarters, ranging from a low of 1.19 to a high of 3.29. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively managing its working capital to support its operations and generate sales.

In Viavi Solutions Inc's case, the working capital turnover ratio has generally shown a positive trend from the end of 2021 to mid-2023, peaking at 3.29 in December 2022. This suggests that the company was utilizing its working capital efficiently during this period to generate sales revenue. However, the ratio began to decline in the latter half of 2023 and into 2024, indicating a potential decrease in efficiency in managing working capital to support sales.

Overall, while Viavi Solutions Inc has shown varying levels of efficiency in utilizing its working capital to generate sales revenue, investors and stakeholders may want to closely monitor the trend to assess the company's financial health and operational effectiveness.