Viavi Solutions Inc (VIAV)

Current 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
Total current assets US$ in thousands 885,200 835,400 880,400 864,000 876,500 867,600 965,300 916,100 945,000 1,003,000 911,900 950,800 1,005,100 1,044,000 1,180,600 1,332,600 1,112,100 1,080,000 1,046,400 961,600
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
Current ratio 1.50 1.53 3.55 3.71 3.55 3.81 3.09 2.95 2.75 2.43 2.77 2.85 2.72 4.02 4.14 4.56 1.58 3.95 3.97 4.23

June 30, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $885,200K ÷ $589,700K
= 1.50

The current ratio of Viavi Solutions Inc demonstrates notable fluctuations over the analyzed period from September 2020 through June 2025. Initially, the ratio was relatively high, measuring 4.23 at September 30, 2020, indicative of a strong liquidity position with ample current assets relative to current liabilities. This upward trend continued, peaking at 4.56 as of September 30, 2021. However, this was followed by a significant decline, reaching a low of 1.58 on June 30, 2021. The period post-June 2021 shows periods of recovery and relative stabilization, with the current ratio oscillating within a range roughly between 2.43 and 4.14, until it decreases again starting around March 2023.

From March 2023 onwards, the ratio showed signs of recovery, rising back to 3.81 by March 31, 2024. Subsequently, it experienced modest fluctuations, ending at 1.50 as of June 30, 2025. Overall, the historical trend indicates that Viavi Solutions Inc maintained a strong liquidity buffer in 2020 and early 2021, as evidenced by ratios well above 3, suggesting the company’s capacity to meet short-term obligations with its current assets. The notable decline between mid-2021 and mid-2023 suggests periods of decreased liquidity or increased current liabilities, which could be attributable to strategic investments, operational challenges, or changes in working capital management.

The recent upward trend leading into 2024 reflects an improvement in liquidity position, but the ratio approaching 1.50 by mid-2025 indicates a tightening of liquidity margins compared to the earlier peak periods. A current ratio significantly below 2 suggests a potentially increased risk of liquidity strain, emphasizing the importance of continued monitoring of the company’s short-term financial health moving forward.