Viavi Solutions Inc (VIAV)
Cash conversion cycle
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 82.97 | 90.68 | 77.45 | 71.49 | 64.55 |
| Days of sales outstanding (DSO) | days | 89.35 | 87.08 | 80.72 | 83.91 | 82.52 |
| Number of days of payables | days | 43.34 | 36.87 | 41.01 | 47.61 | 41.07 |
| Cash conversion cycle | days | 128.99 | 140.90 | 117.15 | 107.79 | 106.00 |
June 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 82.97 + 89.35 – 43.34
= 128.99
The cash conversion cycle of Viavi Solutions Inc has shown fluctuating trends over the past five years. In the latest fiscal year ending on June 30, 2024, the company's cash conversion cycle was 128.99 days, representing a slight improvement compared to the previous year.
Looking back, the cash conversion cycle was highest in June 30, 2023 at 140.90 days, indicating that the company took longer to convert its resources into cash during that period. Subsequently, there was a decrease in the cycle to 117.15 days in June 30, 2022, which could suggest better management of working capital and more efficient operations.
In the two years prior, the cash conversion cycle remained relatively stable, with slight improvements seen in June 30, 2021 (107.79 days) and June 30, 2020 (106.00 days). Overall, fluctuations in the cash conversion cycle can indicate changes in the company's ability to manage its inventory, receivables, and payables effectively, impacting its liquidity and operational efficiency.
Peer comparison
Jun 30, 2024