Viavi Solutions Inc (VIAV)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 57.28% | 57.55% | 57.36% | 57.01% | 57.29% | 56.80% | 57.15% | 57.33% | 57.75% | 58.91% | 59.40% | 59.83% | 59.85% | 59.57% | 59.75% | 59.63% | 59.59% | 59.42% | 58.78% | 58.89% |
| 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% |
| Pretax margin | 3.56% | 1.86% | 0.07% | 0.04% | 1.16% | 2.72% | 3.32% | 3.29% | 5.49% | 8.07% | 10.69% | 11.84% | 5.04% | 3.97% | 3.81% | 3.65% | 9.13% | 10.25% | 8.88% | 9.08% |
| Net profit margin | 3.21% | 0.49% | -3.87% | -3.78% | -2.58% | -0.42% | 0.49% | 0.26% | 2.31% | 3.57% | 6.16% | 8.07% | 1.20% | -0.23% | -0.82% | -1.85% | 3.85% | 6.47% | 2.72% | 3.23% |
Viavi Solutions Inc exhibits relatively stable gross profit margins over the observed period, fluctuating within a narrow range approximating 57.15% to 59.85%. This consistency indicates effective management of cost of goods sold relative to revenue, reflecting stable production or service delivery efficiency and pricing strategies.
The operating profit margins show a notable declining trend from peaks of around 14.73% in September 2022 to lows near 1.59% in September 2023 and December 2024. Although there are brief recoveries, the overall downward trajectory suggests increasing operating expenses or competitive pressures impacting profitability at the operating level.
Pre-tax margins reveal periods of volatility, with peaks reaching approximately 11.84% in September 2022, followed by sharp declines to minimal levels near 0.04% in September 2024. These fluctuations may be attributed to variations in non-operating income, expenses, or extraordinary items affecting pre-tax profitability.
Net profit margins reflect more pronounced variability, including intervals of negative profitability. Significant declines are observed around September 2021 and subsequent quarters, correlating with the period's challenging environment or extraordinary expenses. While positive margins reappear in certain quarters, notably in March and June 2025, overall profitability remains inconsistent, with periods of losses indicating ongoing challenges in translating gross profit into net income.
In summary, while Viavi Solutions maintains stable gross profit margins, indicating consistency in core operational efficiency, the decline in operating, pre-tax, and net profit margins over time highlights increased expenses, margin compression, or external factors impacting overall profitability. The trend towards volatility and occasional losses suggests areas for strategic focus to improve sustainable net income generation.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 1.75% | 0.26% | -2.26% | -2.15% | -1.49% | -0.24% | 0.27% | 0.15% | 1.38% | 2.20% | 4.20% | 5.83% | 0.85% | -0.15% | -0.51% | -1.06% | 2.35% | 3.88% | 1.57% | 1.98% |
| Return on total capital | 7.75% | 5.68% | 4.53% | 2.98% | 4.75% | 6.35% | 6.87% | 8.60% | 10.97% | 16.68% | 22.88% | 28.13% | 15.02% | 11.72% | 11.99% | 11.82% | 24.11% | 24.22% | 22.31% | 23.56% |
| Return on equity (ROE) | 4.46% | 0.70% | -5.71% | -5.33% | -3.79% | -0.60% | 0.69% | 0.40% | 3.69% | 6.17% | 11.15% | 15.87% | 2.31% | -0.41% | -1.33% | -2.68% | 5.95% | 9.20% | 3.76% | 4.80% |
The profitability ratios of Viavi Solutions Inc over the specified periods reflect notable fluctuations and trends indicative of its operational and financial performance.
Operating Return on Assets (Operating ROA) demonstrates an initial increase from 7.05% in September 2020 to a peak of 10.65% in September 2022. Following this peak, there is a discernible decline, culminating at 0.90% by December 2024. The recent recovery into 2025, with values reaching approximately 2.88% in June 2025, suggests a partial regain in operating efficiency, though levels remain significantly lower than historical peaks.
Return on Assets (ROA) exhibits a more volatile pattern, beginning at 1.98% in September 2020. It experienced a sharp decline into negative territory starting in September 2021, with values reaching as low as -2.26% by December 2024. Despite some positive movements into 2025, with figures around 1.75% in June, the overall trend indicates challenges in generating net income relative to total assets, particularly after mid-2021.
Return on Total Capital remains relatively robust during the initial periods, peaking at 28.13% in September 2022. Subsequently, a downward trajectory is evident, with levels decreasing to approximately 4.75% in June 2024. Nonetheless, there is an observed upward movement into 2025, reaching approximately 7.75% in June, possibly reflecting improved capital utilization or operational efficiencies.
Return on Equity (ROE) shows considerable variability, with earlier periods reflecting modest returns around 4.80% in September 2020. There is a notable spike to 15.87% in September 2022, followed by a significant decline, with negative values emerging from March 2024 through late 2024. The recent uptick to 4.46% in June 2025 indicates some recovery in equity-based profitability, though volatility remains pronounced.
Overall, the data depicts a period of substantial fluctuation in Viavi Solutions Inc’s profitability ratios. The initial improvements into 2022 were followed by declines, particularly in net income generation and shareholder returns, which may be attributable to operational, market, or strategic challenges faced during this timeframe. The partial recovery into 2025 suggests a potential stabilization, yet profitability remains below historical highs, highlighting ongoing concerns regarding sustained earning power.