Viavi Solutions Inc (VIAV)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 780,200 | 681,600 | 690,800 | 671,700 | 763,900 |
| ROE | 4.46% | -3.79% | 3.69% | 2.31% | 8.84% |
June 30, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $34,800K ÷ $780,200K
= 4.46%
The analysis of Viavi Solutions Inc.'s return on equity (ROE) over the specified periods reveals significant fluctuations that merit detailed consideration. As of June 30, 2021, the ROE was recorded at 8.84%, indicating a relatively strong profitability in relation to shareholders' equity at that time. This figure experienced a notable decline by June 30, 2022, to 2.31%, reflecting a substantial reduction in the company's efficiency in generating earnings from equity.
In the subsequent year, the ROE exhibited a modest recovery to 3.69% as of June 30, 2023, suggesting some improvement in profitability but remaining well below the earlier peak observed in 2021. The following period, ending June 30, 2024, showed a significant reversal, with the ROE turning negative at -3.79%. This negative ROE indicates that the company experienced losses attributable to shareholders' equity during this period, which could be symptomatic of operational challenges, adverse market conditions, or one-time accounting impacts.
Looking forward, the ROE for June 30, 2025, is projected to improve to 4.46%. This recovery, although still below the 2021 levels, signals a potential turnaround in profitability and efficiency in utilizing shareholders' equity.
Overall, Viavi Solutions Inc.'s ROE has demonstrated considerable volatility over the analyzed periods, oscillating from positive to negative territory. This pattern underscores periods of operational difficulty and recovery phases, highlighting the importance of scrutinizing underlying factors such as profit margins, asset utilization, and financial leverage that influence these fluctuations.
Peer comparison
Jun 30, 2025