Viavi Solutions Inc (VIAV)

Quick ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cash	US$ in thousands	427,300	471,300	506,500	559,900	697,800
Short-term investments	US$ in thousands	1,700	19,900	14,600	1,400	1,600
Receivables	US$ in thousands	261,000	244,900	231,200	260,900	256,500
Total current liabilities	US$ in thousands	589,700	247,100	343,500	369,300	747,400
Quick ratio		1.17	2.98	2.19	2.23	1.28

June 30, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($427,300K + $1,700K + $261,000K) ÷ $589,700K
= 1.17

The quick ratio of Viavi Solutions Inc. exhibits notable fluctuations over the provided period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the ratio stood at 1.28, indicating that the company's liquid assets were sufficient to cover its current liabilities by approximately 1.28 times. This suggests a reasonably comfortable liquidity position at that time.

By June 30, 2022, the quick ratio increased significantly to 2.23, reflecting an improved liquidity stance whereby liquid assets more than doubled relative to current liabilities. This trend continued, albeit at a slightly reduced rate, with the ratio marginally decreasing to 2.19 by June 30, 2023. Despite the slight dip, the ratio remained well above 2.0, indicating a strong liquidity cushion.

The ratio further increased to 2.98 as of June 30, 2024, marking a substantial enhancement in liquidity. This peak suggests that liquid assets were nearly three times the current liabilities, signifying a robust ability to meet short-term obligations without reliance on inventory or other less liquid assets.

However, a notable decline is observed in the subsequent year, with the ratio dropping sharply to 1.17 by June 30, 2025. While still above 1.0, this decrease indicates a significant reduction in the company's liquid assets relative to its current liabilities, potentially signaling a tightening of liquidity position compared to previous years.

Overall, the trend in the quick ratio reflects periods of strong liquidity, particularly around 2022 and 2024, followed by a marked decline in 2025. This pattern suggests that while Viavi Solutions Inc. maintained solid liquidity buffers in earlier years, recent years have seen a reduction in liquidity relative to current liabilities, which may warrant closer investigation into underlying causes such as asset management, operational shifts, or changes in current liabilities.