Viavi Solutions Inc (VIAV)

Return on equity (ROE)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Net income	US$ in thousands	-25,800	25,500	15,500	67,500	49,000
Total stockholders’ equity	US$ in thousands	681,600	690,800	671,700	763,900	633,200
ROE		-3.79%	3.69%	2.31%	8.84%	7.74%

June 30, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-25,800K ÷ $681,600K
= -3.79%

Viavi Solutions Inc's return on equity (ROE) has exhibited fluctuating performance over the past five years. The ROE decreased to -3.79% as of June 30, 2024, indicating a negative return. This decline is concerning as it suggests that the company is not efficiently generating profits from its shareholders' equity.

In the preceding year, the ROE stood at 3.69%, showing a slight improvement compared to the previous year's figure of 2.31% as of June 30, 2022. However, both values remain relatively low, indicating that the company may not be effectively utilizing its equity to generate returns for its shareholders.

A more positive trend was observed in the fiscal year ended June 30, 2021, where Viavi Solutions Inc achieved an ROE of 8.84%, reflecting a relatively strong performance. This improvement was maintained from the previous year's ROE of 7.74% as of June 30, 2020.

Overall, Viavi Solutions Inc's ROE has shown volatility in recent years, with varying levels of profitability generated from shareholders' equity. The company should focus on improving its ROE to enhance shareholder value and sustainable financial performance.