Viavi Solutions Inc (VIAV)
Profitability ratios
Return on sales
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 56.84% | 57.57% | 57.75% | 59.85% | 59.59% |
| Operating profit margin | 5.37% | 2.08% | 7.45% | 14.31% | 11.86% |
| Pretax margin | 3.62% | 1.16% | 5.49% | 5.04% | 10.91% |
| Net profit margin | 3.21% | -2.58% | 2.31% | 1.20% | 5.63% |
The profitability ratios for Viavi Solutions Inc over the specified periods demonstrate varying trends. The gross profit margin experienced a slight increase from 59.59% in June 2021 to 59.85% in June 2022, followed by a gradual decline to 57.75% in June 2023, and further to 57.57% in June 2024, and 56.84% in June 2025. This indicates a marginal reduction in the company's ability to retain gross profit relative to revenue over the recent years.
The operating profit margin showed an increase from 11.86% in June 2021 to 14.31% in June 2022, suggesting improved operational efficiency during that period. However, it subsequently declined sharply to 7.45% in June 2023, and continued to decrease to 2.08% in June 2024 before a modest recovery to 5.37% in June 2025. This fluctuation reflects significant volatility in operating profitability, with a notable drop in 2023 and partial recovery thereafter.
Pre-tax margins mirrored the trend observed in operating margins, rising from 10.91% in June 2021 to 5.04% in June 2022, then maintaining relatively stable levels around 5% in 2023, but dropping sharply to 1.16% in 2024 and slightly improving to 3.62% in 2025. This pattern suggests increasing challenges in translating operating income into pre-tax profit, particularly in recent years.
Net profit margins were positive in the earlier years, at 5.63% in June 2021 and declining markedly to 1.20% in 2022. In 2023, the net margin improved slightly to 2.31%, but in 2024, it turned negative at -2.58%, indicating a net loss. The subsequent recovery to 3.21% in June 2025 reflects some improvement in the company's bottom-line profitability.
Overall, the data indicates that Viavi Solutions Inc has experienced fluctuations in profitability metrics over the analyzed period, with notable declines in operating and net profit margins in 2023 and 2024, followed by partial recoveries. While gross margins have remained relatively stable, the increases in operating and net profit margins in 2022 suggest periods of operational and financial improvement, contrasted by recent challenges impacting overall profitability.
Return on investment
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.92% | 1.20% | 4.45% | 10.12% | 7.25% |
| Return on assets (ROA) | 1.75% | -1.49% | 1.38% | 0.85% | 3.44% |
| Return on total capital | 8.79% | 6.24% | 12.25% | 13.16% | 19.05% |
| Return on equity (ROE) | 4.46% | -3.79% | 3.69% | 2.31% | 8.84% |
The analysis of Viavi Solutions Inc.'s profitability ratios over the indicated period reveals notable variations and some concerning trends.
Starting with the Operating Return on Assets (Operating ROA), the data indicates an increase from 7.25% on June 30, 2021, to 10.12% on June 30, 2022, marking a significant improvement in operational efficiency. However, a subsequent decline is observed, with the ratio dropping to 4.45% by June 30, 2023, and further decreasing to 1.20% in June 2024. A modest recovery to 2.92% is noted in June 2025. This pattern suggests initial operational improvements followed by a deterioration, which slightly stabilizes in the most recent year.
In comparison, the Return on Assets (ROA), which measures overall profitability relative to total assets, was 3.44% on June 30, 2021. It experienced a sharp decline to 0.85% in 2022, then increased again to 1.38% in 2023. However, the subsequent year shows a negative figure, at -1.49% in June 2024, indicating losses relative to assets during that period. There is a partial recovery to 1.75% in June 2025, suggesting some improvement, though it remains close to breakeven.
The Return on Total Capital exhibits a declining trend from 19.05% in 2021 to 13.16% in 2022 and further down to 12.25% in 2023. This reduction indicates decreased efficiency in generating profits from the total capital employed. The downward trajectory continues into 2024, with a dramatic decrease to 6.24%. In 2025, a recovery to 8.79% occurs, but it remains below historical peaks, reflecting ongoing challenges in capital efficiency.
Regarding Return on Equity (ROE), the ratio was relatively high at 8.84% in 2021 but dropped sharply to 2.31% in 2022, coupled with a slight increase to 3.69% in 2023. Subsequently, the ROE turns negative at -3.79% in 2024, indicating that shareholders suffered losses during that year. A recovery to 4.46% in 2025 suggests a partial rebound in profitability from the shareholders’ perspective, yet it remains below historical levels.
Overall, the analysis indicates periods of improved operational and asset efficiency in 2022, followed by declines in subsequent years. The negative figures in some profitability ratios in 2024 highlight recent challenges in generating consistent profits, especially from equity and assets. The partial recovery observed in 2025 suggests a potential turnaround, but the ratios still exhibit signs of volatility and uncertain profitability performance.