Viavi Solutions Inc (VIAV)

Liquidity ratios

	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
Current ratio	3.55	3.81	3.09	2.95	2.75	2.43	2.77	2.85	2.72	4.02	4.14	4.56	1.49	3.95	3.97	4.23	3.92	3.82	3.65	3.24
Quick ratio	2.98	3.19	2.59	2.46	2.29	1.41	2.27	1.54	2.29	2.28	2.57	3.14	0.94	2.47	2.45	2.60	2.32	2.23	2.11	1.86
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

Viavi Solutions Inc's liquidity ratios have shown fluctuations over the past few quarters. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has generally been above 2, indicating a healthy liquidity position. However, there was a significant decrease in the current ratio from the first quarter of 2022 to the third quarter of 2022, possibly suggesting a temporary strain on short-term liquidity.

The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, has also exhibited variability but has generally remained above 1, indicating Viavi Solutions Inc's ability to cover its short-term liabilities without relying on inventory. Notably, the quick ratio dipped in the first quarter of 2023 but recovered in subsequent quarters.

The cash ratio, which provides the most conservative measure of liquidity by considering only cash and cash equivalents, has generally remained above 1, signaling that Viavi Solutions Inc has sufficient cash on hand to cover its short-term liabilities. However, there was a notable decrease in the cash ratio in the first quarter of 2023, which may warrant further investigation to understand the underlying reasons.

Overall, Viavi Solutions Inc appears to have maintained a relatively strong liquidity position based on these ratios, with the current ratio consistently above 2 and the quick ratio also demonstrating resilience over the quarters analyzed. However, management should closely monitor these ratios to ensure continued ability to meet short-term obligations.

Additional liquidity measure

		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 conversion cycle	days	128.99	139.24	146.64	138.20	140.90	62.00	126.85	34.61	117.15	39.58	33.50	26.15	23.88	27.89	27.74	33.34	23.48	31.84	32.60	28.90

The cash conversion cycle of Viavi Solutions Inc has shown fluctuations over the past few quarters. The average cash conversion cycle over the period appears to be around 78 days.

The company's cash conversion cycle represents the time it takes for Viavi Solutions to convert its investments in inventory and other resources into cash from sales.

In analyzing the trend, there has been variability in the cash conversion cycle, with longer cycles observed in the second and fourth quarters of certain years. This indicates that the company may be experiencing delays in converting its investments into cash during those quarters.

On the other hand, the first and third quarters generally show shorter cash conversion cycles, suggesting more efficient management of working capital and quicker conversion of investments into cash during those periods.

It is important for Viavi Solutions Inc to closely monitor and manage its cash conversion cycle to ensure optimal efficiency in utilizing its resources and improving its overall financial performance.