Viavi Solutions Inc (VIAV)

Cash ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cash and cash equivalents	US$ in thousands	427,300	471,300	506,500	559,900	697,800
Short-term investments	US$ in thousands	1,700	19,900	14,600	1,400	1,600
Total current liabilities	US$ in thousands	589,700	247,100	343,500	369,300	747,400
Cash ratio		0.73	1.99	1.52	1.52	0.94

June 30, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($427,300K + $1,700K) ÷ $589,700K
= 0.73

The cash ratio of Viavi Solutions Inc demonstrates notable fluctuations over the specified period from June 30, 2021, to June 30, 2025.

As of June 30, 2021, the company's cash ratio was 0.94, indicating that its cash and cash-equivalents covered approximately 94% of its current liabilities, reflecting a relatively high liquidity position in terms of immediate cash availability.

By June 30, 2022, the cash ratio increased significantly to 1.52, which was maintained at the same level as of June 30, 2023. This suggests an improvement in the company's liquidity, with cash and readily collectible assets surpassing short-term obligations, and possibly an emphasis on maintaining a more conservative liquidity stance during this period.

Moving to June 30, 2024, the cash ratio rose further to 1.99, nearing a position of nearly two times coverage of current liabilities with available cash. This indicates an even stronger liquidity buffer, potentially reflecting conservative cash management or preparation for unforeseen short-term obligations.

However, by June 30, 2025, the cash ratio declined sharply to 0.73. This reduction signifies a decrease in the cash position relative to current liabilities, suggesting a reduction in liquid assets or an increase in short-term liabilities, which could impact the company's immediate liquidity health.

Overall, the pattern indicates a period of improving liquidity from 2021 through 2024, peaking at a cash ratio of 1.99, before experiencing a decline in 2025. The fluctuations highlight the company's changing cash management strategies and liquidity needs over the analyzed timeframe.