Viavi Solutions Inc (VIAV)

Operating return on assets (Operating ROA)

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Operating income (ttm)	US$ in thousands	20,800	38,300	48,100	48,600	82,400	118,600	161,500	187,900	185,000	169,700	164,800	157,800	142,200	152,800	126,000	128,700	118,100	102,600	101,400	89,300
Total assets	US$ in thousands	1,736,300	1,744,000	1,856,200	1,802,100	1,850,500	1,917,400	1,828,000	1,765,100	1,827,900	1,878,000	2,019,600	2,169,500	1,961,400	1,926,800	1,915,200	1,824,400	1,776,300	1,778,200	1,859,700	1,807,700
Operating ROA		1.20%	2.20%	2.59%	2.70%	4.45%	6.19%	8.83%	10.65%	10.12%	9.04%	8.16%	7.27%	7.25%	7.93%	6.58%	7.05%	6.65%	5.77%	5.45%	4.94%

June 30, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $20,800K ÷ $1,736,300K
= 1.20%

Viavi Solutions Inc's operating return on assets (operating ROA) has shown fluctuation over the past few quarters. The operating ROA has ranged from 1.20% to 10.65% in the last eight quarters.

The trend indicates a general decline in operating ROA from a high of 10.65% in September 2022 to 1.20% in June 2024. This could be a cause for concern as a lower operating ROA may indicate inefficiency in generating profits from the assets employed in operations.

However, it's worth noting that the operating ROA has shown some volatility with occasional spikes, such as the increase from 6.58% in March 2021 to 8.83% in December 2022. These fluctuations might be attributed to various operational and economic factors affecting Viavi Solutions Inc during these periods.

Overall, Viavi Solutions Inc's management should closely monitor the trend in operating ROA and identify the key drivers behind the fluctuations to make informed decisions aimed at improving operational efficiency and profitability.