Viavi Solutions Inc (VIAV)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 57.57% | 57.75% | 59.85% | 59.59% | 58.55% |
| Operating profit margin | 2.08% | 7.45% | 14.31% | 11.86% | 10.39% |
| Pretax margin | 1.16% | 5.49% | 5.04% | 10.91% | 10.06% |
| Net profit margin | -2.58% | 2.31% | 1.20% | 5.63% | 4.31% |
Viavi Solutions Inc's profitability ratios have shown fluctuations over the past five years.
The gross profit margin has remained relatively stable, ranging from 57.57% to 59.85%. This indicates the company's ability to generate profits from its core operations after accounting for the cost of goods sold.
However, the operating profit margin has shown a significant decline from 14.31% in 2022 to 2.08% in 2024. This suggests that the company's operating expenses have increased or that its operating income has decreased in relation to sales.
Similarly, the pretax margin has fluctuated, with a noticeable drop in 2024 to 1.16%. This indicates that the company's profitability before considering taxes has decreased compared to previous years.
The net profit margin, which reflects the company's bottom line profitability, has also shown inconsistency, with a negative margin of -2.58% in 2024. This suggests that Viavi Solutions Inc incurred a net loss in that year, impacting its overall profitability.
In conclusion, while Viavi Solutions Inc has maintained a relatively stable gross profit margin, its operating profit margin, pretax margin, and net profit margin have shown fluctuations and downward trends in recent years, indicating potential challenges in managing operating expenses and generating bottom-line profitability. Further analysis is warranted to understand the underlying factors driving these changes.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.20% | 4.45% | 10.12% | 7.25% | 6.65% |
| Return on assets (ROA) | -1.49% | 1.38% | 0.85% | 3.44% | 2.76% |
| Return on total capital | 1.58% | 6.65% | 6.86% | 14.73% | 10.35% |
| Return on equity (ROE) | -3.79% | 3.69% | 2.31% | 8.84% | 7.74% |
Viavi Solutions Inc's profitability ratios show fluctuations over the past five years. Operating return on assets (Operating ROA) has been on a declining trend, decreasing from 10.12% in 2022 to 1.20% in 2024. This indicates that the company's operating efficiency in generating profits from its assets has decreased significantly.
Return on assets (ROA) also reflects a negative trend, with a notable decline from 3.44% in 2021 to -1.49% in 2024, indicating that the company's overall ability to generate profits from its assets has deteriorated.
Return on total capital has fluctuated over the years, with a significant drop from 14.73% in 2021 to 1.58% in 2024, showing a decline in the company's profitability in relation to its total invested capital.
Return on equity (ROE) has also experienced fluctuations, with a downward trend from 8.84% in 2021 to -3.79% in 2024, highlighting a decline in the company's ability to generate returns for its shareholders.
Overall, the profitability ratios of Viavi Solutions Inc suggest a challenging performance in recent years, with decreasing profitability metrics across different perspectives. Management may need to focus on improving operational efficiency and optimizing the use of assets to enhance profitability and overall financial performance.