Viavi Solutions Inc (VIAV)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	681,600	690,800	671,700	763,900	633,200
Debt-to-capital ratio		0.48	0.48	0.48	0.23	0.49

June 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $636,000K ÷ ($636,000K + $681,600K)
= 0.48

The debt-to-capital ratio of Viavi Solutions Inc has remained relatively stable at 0.48 for the most recent three years ending on June 30th, 2024, June 30th, 2023, and June 30th, 2022. This indicates that the company relies on debt to finance approximately 48% of its capital structure consistently during this period.

However, a notable decrease in the debt-to-capital ratio was observed in the year ending June 30th, 2021, where the ratio dropped significantly to 0.23. This may suggest a reduction in the company's debt relative to its total capital during that year.

Prior to 2021, the debt-to-capital ratio was relatively high, standing at 0.49 as of June 30th, 2020. This suggests that Viavi Solutions Inc had a higher reliance on debt to fund its operations and investments in the fiscal year ending June 30th, 2020.

Overall, the company's debt-to-capital ratio has shown some variability over the past five years, with an initial high level in 2020, a significant drop in 2021, and then stabilization at 0.48 in the subsequent three years. This trend indicates fluctuations in Viavi Solutions Inc's debt and capital structure over the analyzed period.