Viavi Solutions Inc (VIAV)

Return on equity (ROE)

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Net income (ttm)	US$ in thousands	-25,800	-4,200	5,000	2,700	25,500	42,100	76,700	102,900	15,500	2,300	300	-7,000	67,500	90,900	40,900	41,600	28,700	14,500	42,500	27,500
Total stockholders’ equity	US$ in thousands	681,600	705,100	728,000	675,200	690,800	682,300	687,800	648,400	671,700	709,900	774,800	858,600	763,900	749,800	733,600	681,000	633,200	676,900	764,300	708,100
ROE		-3.79%	-0.60%	0.69%	0.40%	3.69%	6.17%	11.15%	15.87%	2.31%	0.32%	0.04%	-0.82%	8.84%	12.12%	5.58%	6.11%	4.53%	2.14%	5.56%	3.88%

June 30, 2024 calculation

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

Viavi Solutions Inc's return on equity (ROE) has shown fluctuation over the past several quarters. The ROE ranged from negative values to double-digit positive values. In the most recent quarter ending June 30, 2024, the ROE was -3.79%, indicating a decline in profitability compared to the previous quarter. This negative ROE suggests that the company's net income was not sufficient to generate a positive return for shareholders' equity.

The trend of negative ROE in recent quarters may raise concerns about Viavi Solutions Inc's ability to efficiently utilize shareholder funds to generate profits. The company experienced a significant drop in ROE from the peak of 15.87% in the quarter ending September 30, 2022. This declining trend could indicate operational challenges or inefficiencies impacting the company's profitability.

It is essential for Viavi Solutions Inc to analyze the reasons behind the fluctuating ROE and take corrective measures to improve profitability and shareholder value. Strategies to enhance operational efficiency, cost management, revenue growth, and capital allocation may help the company in achieving sustainable and positive ROE moving forward. Additionally, investors and stakeholders may closely monitor the company's financial performance and management's efforts to address the issues impacting ROE.