Viavi Solutions Inc (VIAV)

Cash ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cash and cash equivalents	US$ in thousands	471,300	506,500	559,900	697,800	539,000
Short-term investments	US$ in thousands	19,900	14,600	1,400	1,600	1,500
Total current liabilities	US$ in thousands	247,100	343,500	369,300	747,400	232,800
Cash ratio		1.99	1.52	1.52	0.94	2.32

June 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($471,300K + $19,900K) ÷ $247,100K
= 1.99

The cash ratio of Viavi Solutions Inc has shown fluctuation over the past five years. The ratio has ranged from 0.94 to 2.32, indicating variability in the company's ability to cover its current liabilities with its cash and cash equivalents. A higher cash ratio suggests a stronger ability to meet short-term obligations without relying on other current assets or external financing.

In 2020, the company had a relatively high cash ratio of 2.32, indicating a robust liquidity position. However, in 2021, the ratio dropped to 0.94, suggesting a potential liquidity strain. Subsequently, in 2022 and 2023, the cash ratio improved to 1.52, indicating a better ability to cover short-term liabilities with available cash. By 2024, the ratio further increased to 1.99, signaling an even stronger liquidity position.

Overall, Viavi Solutions Inc has demonstrated varying levels of liquidity over the years, which investors and analysts should consider when evaluating the company's financial health and risk profile.