Viavi Solutions Inc (VIAV)

Debt-to-equity 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-equity ratio		0.93	0.91	0.92	0.29	0.95

June 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $636,000K ÷ $681,600K
= 0.93

Analysis of Viavi Solutions Inc's debt-to-equity ratio indicates the following trends over the past five years:

- The ratio has been relatively stable around 0.91 to 0.95 from 2020 to 2024, suggesting a consistent capital structure mix of debt and equity.
- There was a significant decrease in the debt-to-equity ratio in 2021, dropping to 0.29, which indicates a lower reliance on debt financing compared to equity during that period.
- The ratio increased again to 0.92 in 2022 and remained relatively steady in 2023 and 2024, indicating a return to a more balanced debt and equity mix.
- Viavi Solutions Inc's overall debt-to-equity ratio hovering around 0.91 to 0.95 suggests a prudent approach to managing its capital structure, maintaining a moderate level of debt relative to equity.

In conclusion, Viavi Solutions Inc has shown consistency in managing its debt and equity levels over the past five years, with a focus on maintaining a stable capital structure to support its operations and growth initiatives.