Viavi Solutions Inc (VIAV)

Quick 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
Cash US$ in thousands 423,600 374,200 488,000 467,900 476,300 457,700 543,700 520,600 506,500 580,600 484,100 512,600 559,900 589,800 732,100 915,600 697,800 672,200 644,200 590,800
Short-term investments US$ in thousands 1,700 22,600 21,400 25,200 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
Receivables US$ in thousands 261,000 279,000 236,700 234,800 244,900 244,600 240,900 190,900 231,200 220,100 223,700 279,700 260,900 269,300 258,300 243,100 256,500 262,700 251,300 220,100
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
Quick ratio 1.16 1.24 3.01 3.13 3.00 3.21 2.59 2.35 2.19 1.94 2.16 2.38 2.23 3.31 3.48 3.97 1.36 3.43 3.40 3.57

June 30, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($423,600K + $1,700K + $261,000K) ÷ $589,700K
= 1.16

The analysis of Viavi Solutions Inc.'s quick ratio over the specified period indicates a generally strong liquidity position, with values consistently well above 1.0, which suggests that the company maintains sufficient liquid assets to cover its current liabilities without needing to liquidate inventories.

From September 2020 through March 2021, the quick ratio maintained a high level, averaging around 3.4 to 3.6, reflecting a robust liquidity cushion. However, a notable decline occurred during the quarter ending June 30, 2021, when the quick ratio dropped sharply to 1.36. This significant decrease could imply a reduction in liquid assets, an increase in short-term liabilities, or both, signaling a potential liquidity concern during that period.

Following this dip, the quick ratio recovered to close to previous levels, reaching nearly 4.0 for the quarter ending September 30, 2021, and maintaining a range broadly between 3.0 and 3.5 throughout 2022. These sustained higher levels suggest that the company's liquidity remained healthy, able to cover immediate obligations comfortably.

Interestingly, from the quarter ending March 31, 2023, the quick ratio started to decline gradually, reaching a low of approximately 1.16 at the end of June 2025. This downward trend warrants attention, as a ratio approaching 1.0 indicates a tighter liquidity coverage and potentially increased vulnerability to liquidity pressures, especially if short-term liabilities increase further or liquid assets decrease.

Overall, the quick ratio appears to remain above 1.0 throughout the observed period, indicating that Viavi Solutions Inc. generally maintains a solid liquidity position. Nevertheless, the notable dip during mid-2021 and the gradual decline observed from 2023 onward suggest periods of reduced liquidity resilience, which could influence the company's ability to meet short-term obligations promptly in certain periods.