Viavi Solutions Inc (VIAV)
Operating profit margin
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 20,800 | 82,400 | 185,000 | 142,200 | 118,100 |
| Revenue | US$ in thousands | 1,000,400 | 1,106,100 | 1,292,400 | 1,198,900 | 1,136,300 |
| Operating profit margin | 2.08% | 7.45% | 14.31% | 11.86% | 10.39% |
June 30, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $20,800K ÷ $1,000,400K
= 2.08%
Viavi Solutions Inc's operating profit margin has shown a declining trend over the past five years, as indicated by the figures provided. The company's operating profit margin decreased from 10.39% in 2020 to 2.08% in 2024. This suggests a notable decrease in the efficiency of Viavi Solutions Inc in generating profit from its core operations.
The fluctuation in operating profit margin can be attributed to various factors such as changes in operating expenses, cost structure, revenue fluctuations, and economic conditions. A decreasing trend in operating profit margin may raise concerns about the company's ability to maintain profitability and effectively manage costs.
It is essential for Viavi Solutions Inc to closely monitor its operating expenses, optimize its cost structure, and enhance operational efficiency to improve its operating profit margin and ensure sustainable profitability in the future.
Peer comparison
Jun 30, 2024