Viavi Solutions Inc (VIAV)

Financial leverage ratio

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Total assets	US$ in thousands	1,736,300	1,744,000	1,856,200	1,802,100	1,850,500	1,917,400	1,828,000	1,765,100	1,827,900	1,878,000	2,019,600	2,169,500	1,961,400	1,926,800	1,915,200	1,824,400	1,776,300	1,778,200	1,859,700	1,807,700
Total stockholders’ equity	US$ in thousands	681,600	705,100	728,000	675,200	690,800	682,300	687,800	648,400	671,700	709,900	774,800	858,600	763,900	749,800	733,600	681,000	633,200	676,900	764,300	708,100
Financial leverage ratio		2.55	2.47	2.55	2.67	2.68	2.81	2.66	2.72	2.72	2.65	2.61	2.53	2.57	2.57	2.61	2.68	2.81	2.63	2.43	2.55

June 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,736,300K ÷ $681,600K
= 2.55

The financial leverage ratio of Viavi Solutions Inc has been relatively stable over the past several quarters, ranging from 2.43 to 2.81. This ratio measures the company's reliance on debt to finance its operations and investments.

An increasing trend in the financial leverage ratio typically indicates higher financial risk due to the increased proportion of debt in the capital structure. Conversely, a decreasing trend suggests lower financial risk as the company relies more on equity financing.

Viavi Solutions Inc's financial leverage ratio fluctuated slightly within a narrow range, indicating a moderate level of leverage compared to its equity. It is essential for investors and creditors to monitor changes in this ratio to assess the company's ability to meet its financial obligations and the potential impact of debt on its overall solvency.