Viavi Solutions Inc (VIAV)

Financial leverage ratio

		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
Total assets	US$ in thousands	1,993,800	1,933,200	1,725,100	1,737,600	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
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
Financial leverage ratio		2.56	2.65	2.53	2.47	2.55	2.47	2.55	2.67	2.68	2.81	2.66	2.72	2.72	2.65	2.61	2.53	2.53	2.37	2.39	2.42

June 30, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,993,800K ÷ $780,200K
= 2.56

The financial leverage ratio of Viavi Solutions Inc., over the analyzed period from September 2020 through June 2025, has demonstrated variability within a relatively narrow range. Starting at 2.42 in September 2020, the ratio experienced slight fluctuations but remained generally stable, indicating consistent use of debt relative to equity.

Importantly, the leverage ratio peaked at 2.81 in March 2023, suggesting an increased reliance on debt financing during that period. Prior to this peak, the ratio had gradually risen from approximately 2.37 in March 2021 to higher levels, reflecting a trend toward increased leverage.

Following the peak, the ratio exhibited a modest decline to 2.47 in June 2024, and then a slight increase again to 2.65 in March 2025. The overall trend, however, remains relatively stable within the 2.4 to 2.8 range, indicating a balanced approach to leverage that does not suggest excessive or overly conservative financial structuring.

The fluctuations in the leverage ratio imply that the company has adjusted its capital structure in response to operational needs or strategic considerations but has maintained a consistent level of financial risk associated with its leverage profile. Generally, the ratios suggest a moderate use of debt in the firm's capital structure, which can support growth initiatives while managing the risks associated with higher leverage.