Viavi Solutions Inc (VIAV)

Operating profit margin

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
Operating income (ttm) US$ in thousands 57,500 36,500 15,600 15,800 20,300 37,800 58,300 58,800 92,600 128,800 161,500 187,900 185,000 169,700 164,800 157,800 142,200 152,800 126,000 128,700
Revenue (ttm) US$ in thousands 1,084,300 1,045,800 1,007,000 990,700 1,000,400 1,012,000 1,013,800 1,043,800 1,106,100 1,177,800 1,245,500 1,275,800 1,292,400 1,268,000 1,255,900 1,241,000 1,198,900 1,154,600 1,107,400 1,121,200
Operating profit margin 5.30% 3.49% 1.55% 1.59% 2.03% 3.74% 5.75% 5.63% 8.37% 10.94% 12.97% 14.73% 14.31% 13.38% 13.12% 12.72% 11.86% 13.23% 11.38% 11.48%

June 30, 2025 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $57,500K ÷ $1,084,300K
= 5.30%

The analysis of Viavi Solutions Inc.'s operating profit margin over the specified period reveals a trend characterized by initial stability, subsequent fluctuation, and a notable decline in recent quarters. Between September 30, 2020, and June 30, 2022, the operating profit margin exhibited a generally upward trajectory, increasing from approximately 11.48% to a peak of around 14.31%. This period indicates improving operational efficiency and potentially successful cost management or revenue growth.

Following this peak, the margin experienced a slight decline, decreasing to approximately 12.97% by December 31, 2022. The trend continued downward thereafter, with a marked deterioration observed by March 31, 2023, when the margin dropped to about 10.94%. The decline persisted through subsequent quarters, with the operating profit margin reaching approximately 8.37% on June 30, 2023, and further decreasing to 5.63% by September 30, 2023.

Recent data indicates a significant erosion of operating profitability, with margins declining sharply to around 1.59% on September 30, 2024. Although there was a slight uptick in the following quarters, the margins remained relatively low, with 1.55% on December 31, 2024, and a modest recovery to approximately 3.49% on March 31, 2025, and 5.30% by June 30, 2025.

Overall, the operating profit margin trend suggests a period of initial operational improvement followed by a sustained decline in profitability. The substantial decrease in recent periods could signal intensified competitive pressures, rising costs, or other operational challenges impacting profitability. The recent upticks may reflect some adjustments or strategic initiatives, but the margins remain substantially below their earlier peaks, indicating ongoing operational pressures affecting the company's profitability profile.