Viavi Solutions Inc (VIAV)
Return on total capital
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 60,500 | 41,400 | 30,900 | 20,900 | 32,400 | 44,800 | 50,000 | 58,100 | 75,800 | 113,800 | 157,400 | 182,400 | 100,900 | 83,200 | 92,900 | 101,500 | 186,800 | 196,600 | 178,700 | 177,600 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 780,200 | 728,800 | 682,800 | 702,100 | 681,600 | 705,100 | 728,000 | 675,200 | 690,800 | 682,300 | 687,800 | 648,400 | 671,700 | 709,900 | 774,800 | 858,600 | 774,800 | 811,800 | 801,000 | 753,800 |
| Return on total capital | 7.75% | 5.68% | 4.53% | 2.98% | 4.75% | 6.35% | 6.87% | 8.60% | 10.97% | 16.68% | 22.88% | 28.13% | 15.02% | 11.72% | 11.99% | 11.82% | 24.11% | 24.22% | 22.31% | 23.56% |
June 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $60,500K ÷ ($—K + $780,200K)
= 7.75%
The data on Viavi Solutions Inc's return on total capital (ROTC) over a series of reporting periods illustrates notable fluctuations across the observed timeline. Initially, at the end of September 2020, the ROTC stood at 23.56%, indicating a relatively high level of efficiency in generating profit from the company's total capital base. This level saw a slight decline by the end of December 2020, decreasing to 22.31%.
In the subsequent quarterly periods, ROTC experienced increases, reaching a peak of 24.22% in March 2021 and slightly maintaining at 24.11% in June 2021. This suggests an improvement in operating performance or capital efficiency during this period. However, a significant decline occurred by September 2021, with the ROTC dropping sharply to 11.82%, and it remained relatively stagnant around 12% in the following quarters, including December 2021 and March 2022, where it stood at 11.99% and 11.72% respectively.
A recovery was observed in June 2022, with ROTC rising to 15.02%, followed by a more substantial increase to 28.13% in September 2022. This peak indicates a period of enhanced performance or possibly favorable capital restructuring. Nevertheless, this elevated level was not sustained, as the figure decreased to 22.88% by December 2022 and further declined to 16.68% in March 2023.
From mid-2023 onwards, there was a consistent downward trend: ROTC dropped to 10.97% in June 2023, then to 8.60% in September 2023, and continued diminishing to 6.87% in December 2023 and 6.35% in March 2024. The subsequent periods reported a further decline, reaching 4.75% on June 30, 2024, and down to 2.98% as of September 30, 2024. These readings suggest a period of decreasing efficiency in generating returns from total capital.
In the most recent periods, an improvement is noted: ROTC increased to 4.53% in December 2024, then rose again to 5.68% in March 2025 and 7.75% in June 2025. This upward movement may hint at a potential recovery or restructuring efforts positively impacting capital utilization efficiencies.
Overall, the company's ROTC experienced considerable volatility over the analyzed timeframe, characterized by periods of high performance, sharp declines, and recent signs of recovery. Factors influencing these fluctuations could be related to operational changes, market conditions, capital structure adjustments, or strategic initiatives undertaken during specific periods.
Peer comparison
Jun 30, 2025