Viavi Solutions Inc (VIAV)

Cash conversion cycle

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
Days of inventory on hand (DOH) days 92.90 95.55 78.88 79.87 82.43 86.32 96.71 93.01 90.68 94.96 86.83 78.77 77.45 81.09 82.60 74.89 71.49 70.58 70.52 69.14
Days of sales outstanding (DSO) days 87.86 97.38 85.79 86.51 89.35 88.22 86.73 66.75 76.29 68.21 65.56 80.02 73.68 77.52 75.07 71.50 78.09 83.05 82.83 71.65
Number of days of payables days 54.21 55.26 47.35 40.62 43.05 35.48 36.80 32.62 36.87 32.96 36.23 44.16 41.01 41.50 49.10 48.74 47.61 42.69 42.78 35.80
Cash conversion cycle days 126.55 137.67 117.33 125.76 128.73 139.06 146.64 127.15 130.11 130.21 116.15 114.63 110.12 117.10 108.57 97.65 101.97 110.94 110.57 104.99

June 30, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 92.90 + 87.86 – 54.21
= 126.55

The data indicates that the cash conversion cycle (CCC) of Viavi Solutions Inc has exhibited notable fluctuations from September 2020 through June 2025. Initially, the CCC was approximately 104.99 days at the end of September 2020, gradually increasing to around 110.57 days by the end of December 2020. Throughout 2021, the cycle demonstrated a pattern of variability but generally remained within the 97.65 to 117.10 days range, suggesting periods of operational efficiency interspersed with slight elongations.

From late 2021 onwards, there was a discernible upward trend, with the cycle rising to over 130 days by March 2023, reaching a peak of approximately 146.64 days at the end of December 2023. This prolonged cycle during this period suggests potential challenges in cash flow management, possibly due to extended receivables collection periods or longer inventory turnover times.

Subsequently, the CCC exhibited signs of partial improvement in mid-2024, with a reduction to roughly 117.33 days by December 2024. However, the cycle increased again in early 2025, reaching approximately 137.67 days in March before slightly decreasing to 126.55 days by June 2025.

Overall, the trends indicate periods of operational inefficiencies or strategic shifts impacting the collection periods, inventory management, or payable cycles. The significant peaks towards the end of 2023 could highlight challenges in receivables collection or inventory turnover, whereas the partial reductions in 2024 may reflect efforts to improve cash flow and operational efficiency. The fluctuations highlight an ongoing variability in the company's ability to efficiently manage its working capital components, impacting the overall cash conversion cycle.