Viavi Solutions Inc (VIAV)

Quick ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cash	US$ in thousands	471,300	506,500	559,900	697,800	539,000
Short-term investments	US$ in thousands	19,900	14,600	1,400	1,600	1,500
Receivables	US$ in thousands	244,900	263,900	285,800	275,600	256,900
Total current liabilities	US$ in thousands	247,100	343,500	369,300	747,400	232,800
Quick ratio		2.98	2.29	2.29	1.30	3.43

June 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($471,300K + $19,900K + $244,900K) ÷ $247,100K
= 2.98

The quick ratio of Viavi Solutions Inc has exhibited fluctuations over the past five years. It stood at 2.98 as of June 30, 2024, indicating an improvement compared to the prior year. This suggests that the company has a strong ability to cover its short-term liabilities with its most liquid assets.

The quick ratio was relatively stable in 2022 and 2023 at 2.29, signaling consistent liquidity management during those periods. In 2021, the quick ratio decreased to 1.30, which may indicate a temporary reduction in the company's ability to meet its short-term obligations with its quick assets.

Notably, there was a significant increase in the quick ratio to 3.43 in 2020, highlighting a notably high liquidity position. Overall, the trend in Viavi Solutions Inc's quick ratio reflects prudent liquidity management, with fluctuations possibly driven by changes in the company's current asset composition and short-term liabilities.