Viavi Solutions Inc (VIAV)
Liquidity ratios
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 3.55 | 2.75 | 2.72 | 1.49 | 3.92 |
| Quick ratio | 2.98 | 2.29 | 2.29 | 1.30 | 3.43 |
| Cash ratio | 1.99 | 1.52 | 1.52 | 0.94 | 2.32 |
Viavi Solutions Inc's liquidity ratios indicate the company's ability to meet its short-term financial obligations efficiently. The current ratio has improved progressively over the five-year period, reaching 3.55 in 2024 from 1.49 in 2021. This signifies that Viavi Solutions Inc has an increasing ability to cover its current liabilities with its current assets.
The quick ratio, which excludes inventory from current assets, also shows a positive trend, increasing from 1.30 in 2021 to 2.98 in 2024. This indicates Viavi Solutions Inc's strong ability to meet its short-term obligations without relying on inventory liquidity.
The cash ratio shows Viavi Solutions Inc's ability to cover its current liabilities with its most liquid assets, cash and cash equivalents. The cash ratio increased from 0.94 in 2021 to 1.99 in 2024, indicating an improvement in the company's cash position and ability to meet short-term obligations effectively.
Overall, Viavi Solutions Inc's liquidity ratios have improved significantly over the five-year period, reflecting a strong financial position and efficient management of short-term obligations.
Additional liquidity measure
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 128.99 | 140.90 | 117.15 | 107.79 | 106.00 |
The cash conversion cycle of Viavi Solutions Inc has exhibited fluctuations over the past five years. In particular, the company's cash conversion cycle was 128.99 days as of June 30, 2024, compared to 140.90 days in the previous year. This improvement suggests that Viavi Solutions has been managing its working capital more efficiently. However, when compared to two years ago, where the cycle was 117.15 days, there has been a slight deterioration in efficiency.
Furthermore, the trend over the past five years indicates that the company's cash conversion cycle has been relatively stable, with minor variations year over year. The longest cycle was observed in June 2023 at 140.90 days, while the shortest cycle was in June 2020 at 106.00 days.
Overall, the cash conversion cycle of Viavi Solutions Inc reflects the company's ability to convert its investments in inventory and accounts receivable into cash, with a recent improvement in efficiency compared to the previous year. This metric plays a crucial role in assessing the company's working capital management and operational efficiency.