Viavi Solutions Inc (VIAV)

Return on assets (ROA)

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Net income	US$ in thousands	34,800	-25,800	25,500	15,500	67,500
Total assets	US$ in thousands	1,993,800	1,736,300	1,850,500	1,827,900	1,961,400
ROA		1.75%	-1.49%	1.38%	0.85%	3.44%

June 30, 2025 calculation

ROA = Net income ÷ Total assets
= $34,800K ÷ $1,993,800K
= 1.75%

The return on assets (ROA) for Viavi Solutions Inc. demonstrates notable fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the company's ROA stood at 3.44%, indicating a relatively efficient use of its assets to generate net income. This metric then declined significantly by June 30, 2022, to 0.85%, suggesting a decrease in profitability relative to its asset base. The trend continued to show some recovery, with ROA increasing to 1.38% as of June 30, 2023, but remained below the 2021 level, reflecting modest improvement in asset utilization.

However, by June 30, 2024, the ROA turned negative at -1.49%, pointing to a period of unprofitability where net income was insufficient to cover the assets employed, possibly due to increased costs, reduced revenues, or other operational challenges. Despite this setback, the ROA improved and returned to positive territory, reaching 1.75% as of June 30, 2025, indicating a rebound in profitability and better utilization of assets.

Overall, the ROA trend indicates that Viavi Solutions Inc. experienced a peak in asset efficiency in mid-2021, followed by a period of decline, a brief recovery, and a significant downturn into negative territory before ultimately showing signs of improvement. This volatility may reflect underlying operational, strategic, or market conditions impacting the company's profitability and asset management efficiencies during these years.