Viavi Solutions Inc (VIAV)

Debt-to-assets ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Long-term debt	US$ in thousands	636,000	629,500	616,500	224,100	600,900
Total assets	US$ in thousands	1,736,300	1,850,500	1,827,900	1,961,400	1,776,300
Debt-to-assets ratio		0.37	0.34	0.34	0.11	0.34

June 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $636,000K ÷ $1,736,300K
= 0.37

The debt-to-assets ratio for Viavi Solutions Inc has shown some variation over the past five years. The ratio increased from 0.11 in June 2021 to 0.34 in June 2022 and remained at this level in June 2023 before rising slightly to 0.37 in June 2024.

A higher debt-to-assets ratio indicates that a company relies more on debt to finance its operations and investments, which can increase financial risk. In this case, the gradual increase in the ratio since June 2022 suggests that Viavi Solutions Inc has taken on more debt relative to its assets.

While a debt-to-assets ratio of 0.37 in June 2024 may signify a moderate level of debt compared to assets, it is essential to consider other factors such as the company's ability to service its debt obligations and whether the increase in the ratio aligns with the company's growth and profitability goals. Continued monitoring of the trend in the debt-to-assets ratio will be important to assess Viavi Solutions Inc's financial health and risk profile.