Viavi Solutions Inc (VIAV)
Return on total capital
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 20,800 | 87,800 | 88,400 | 145,500 | 127,700 |
| Long-term debt | US$ in thousands | 636,000 | 629,500 | 616,500 | 224,100 | 600,900 |
| Total stockholders’ equity | US$ in thousands | 681,600 | 690,800 | 671,700 | 763,900 | 633,200 |
| Return on total capital | 1.58% | 6.65% | 6.86% | 14.73% | 10.35% |
June 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $20,800K ÷ ($636,000K + $681,600K)
= 1.58%
Viavi Solutions Inc's return on total capital has shown a decreasing trend over the last five years. The return on total capital was 1.58% as of June 30, 2024, down from 6.65% in the previous year and 6.86% in the year before that. This decline indicates that the company is generating lower returns relative to its total capital employed.
Comparing to the higher returns of 14.73% in 2021 and 10.35% in 2020, it appears that Viavi Solutions Inc's efficiency in generating profits from its total capital has decreased in recent years. Further analysis is needed to determine the reasons behind this declining trend and to assess the company's overall financial performance and capital management strategies.
Peer comparison
Jun 30, 2024