Viavi Solutions Inc (VIAV)

Operating return on assets (Operating ROA)

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
Total assets US$ in thousands 1,993,800 1,933,200 1,725,100 1,737,600 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
Operating ROA 2.88% 1.89% 0.90% 0.91% 1.17% 2.17% 3.14% 3.26% 5.00% 6.72% 8.83% 10.65% 10.12% 9.04% 8.16% 7.27% 7.25% 7.93% 6.58% 7.05%

June 30, 2025 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $57,500K ÷ $1,993,800K
= 2.88%

The analysis of Viavi Solutions Inc.'s operating return on assets (ROA) over the specified period reveals a trend characterized by initial stability followed by a significant decline. Between September 30, 2020, and the end of 2022, the company's operating ROA exhibited an upward trajectory, rising from 7.05% to a peak of 10.65% on September 30, 2022. This upward movement indicates improved efficiency in generating operating income relative to its assets during this timeframe, reflective of operational strength amidst favorable market conditions or successful strategic initiatives.

Subsequently, a downward trend becomes apparent starting in late 2022. By December 31, 2022, the operating ROA decreased to 8.83%, followed by a further decline to 6.72% as of March 31, 2023. The decline continued markedly over the next quarters, reaching notably lower levels of 5.00% in June 2023, and then dropping sharply to 3.26% by September 30, 2023. These declines suggest a decrease in operational efficiency or profitability relative to assets, potentially attributable to increased costs, competitive pressures, or other operational challenges.

From the end of 2023 through mid-2025, the operating ROA remains relatively low, fluctuating between approximately 0.90% and 3.14%, with a slight recovery evident in the second quarter of 2025 at 2.88%. This limited and variable recovery indicates ongoing challenges in maintaining prior levels of operational efficiency, with recent figures reflecting constrained profitability relative to asset base.

Overall, the data indicates a substantial shift from an improving operational environment leading into late 2022 to a period of declining efficiency and profitability, with the most recent quarterly figures suggesting modest, if any, recuperation. This pattern may warrant further investigation into underlying operational, market, or strategic factors impacting the company's ability to sustain higher operating ROA levels.