Viavi Solutions Inc (VIAV)

Cash ratio

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Cash and cash equivalents	US$ in thousands	471,300	454,200	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	539,000	532,500	551,800	525,300
Short-term investments	US$ in thousands	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	1,500	1,300	1,600	1,500
Total current liabilities	US$ in thousands	247,100	227,800	312,100	310,900	343,500	412,600	328,700	333,200	369,300	259,700	285,100	292,500	747,400	273,100	263,600	227,500	232,800	239,100	261,900	282,500
Cash ratio		1.99	2.12	1.82	1.74	1.52	1.41	1.48	1.54	1.52	2.28	2.57	3.14	0.94	2.47	2.45	2.60	2.32	2.23	2.11	1.86

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 several quarters. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.

From December 2019 to September 2020, the cash ratio ranged between 2.23 and 2.60, indicating a strong ability to cover short-term obligations with cash on hand. However, there was a notable decrease in the cash ratio in the subsequent quarters, reaching a low of 0.94 in March 2021, which may have raised concerns about the company's liquidity position.

The cash ratio improved significantly in the following quarters, surpassing 2.00, indicating that Viavi Solutions Inc had a healthier cash position relative to its short-term obligations. The ratio peaked at 3.14 in December 2021, reflecting a substantial increase in the company's ability to cover its short-term liabilities with cash.

It is important for investors and stakeholders to closely monitor Viavi Solutions Inc's cash ratio to assess its liquidity and ability to meet its short-term financial obligations. Fluctuations in the cash ratio could indicate changes in the company's financial health and management of its cash resources.