Viavi Solutions Inc (VIAV)

Cash ratio

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
Cash and cash equivalents US$ in thousands 423,600 374,200 488,000 467,900 476,300 457,700 543,700 520,600 506,500 580,600 484,100 512,600 559,900 589,800 732,100 915,600 697,800 672,200 644,200 590,800
Short-term investments US$ in thousands 1,700 22,600 21,400 25,200 19,900 28,400 25,000 20,500 14,600 1,500 1,400 1,300 1,400 1,600 1,700 1,600 1,600 1,600 1,600 1,500
Total current liabilities US$ in thousands 589,700 544,700 248,000 232,800 247,100 227,800 312,100 310,900 343,500 412,600 328,700 333,200 369,300 259,700 285,100 292,500 705,000 273,100 263,600 227,500
Cash ratio 0.72 0.73 2.05 2.12 2.01 2.13 1.82 1.74 1.52 1.41 1.48 1.54 1.52 2.28 2.57 3.14 0.99 2.47 2.45 2.60

June 30, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($423,600K + $1,700K) ÷ $589,700K
= 0.72

The cash ratio of Viavi Solutions Inc over the period from September 30, 2020, to June 30, 2025, exhibits notable fluctuations. Initially, the cash ratio was relatively high, at 2.60, in September 2020, indicating that the company's cash and cash equivalents substantially exceeded its current liabilities at that time. This high level of liquidity persisted through to December 2020 and March 2021, with ratios of 2.45 and 2.47, respectively, demonstrating a strong liquidity position.

A significant decline was observed in June 2021, where the cash ratio decreased sharply to 0.99. This suggests that by mid-2021, Viavi's cash holdings had fallen to nearly cover only one-third of its current liabilities, signaling a reduced immediate liquidity buffer. Following this, the cash ratio increased again to over 3.00 in September 2021, reaching 3.14, indicating a substantial improvement in liquidity relative to current liabilities. Subsequent periods saw the ratio oscillate around the 2.0 to 2.5 range, with values such as 2.57 in December 2021, 2.28 in March 2022, and a declining trend down to approximately 1.52 in June 2022 and September 2022.

From late 2022 through mid-2023, the cash ratio remained relatively stable, fluctuating between approximately 1.41 and 1.74, suggesting that the company's cash and cash equivalents consistently covered a little over half to nearly all of its current liabilities. Notably, the ratio increased again to 2.13 in March 2024, before experiencing a slight decline to 2.01 in June 2024, and stabilizing around similar levels through September 2024.

A marked decrease occurred in the subsequent period ending March 31, 2025, where the cash ratio dropped sharply to 0.73, and further to 0.72 by June 2025. This decline indicates a significant reduction in cash holdings relative to current liabilities, approaching less than one-third coverage, which may reflect recent liquidity strains or changes in the company's cash management or working capital structure.

Overall, the company's cash ratio has demonstrated considerable variability over the analyzed timeframe. Periods of high liquidity early in the period have been followed by fluctuations and a notable decline toward the end, primarily from late 2024 through mid-2025. This trend underscores the importance of monitoring the company's liquidity management and its potential implications for its short-term financial stability.