Viavi Solutions Inc (VIAV)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The analysis of Viavi Solutions Inc.'s solvency ratios over the reported periods indicates a pattern of minimal leverage and a consistently conservative capital structure. The Debt-to-Assets, Debt-to-Capital, and Debt-to-Equity ratios are uniformly reported as zero across all periods from September 30, 2020, through June 30, 2025. This suggests that the company has maintained negligible or no reported debt during this timeframe, reflecting a potentially debt-free or highly conservatively financed capital structure.
The absence of debt-related ratios implies that the company's financial leverage ratios—specifically, the Financial Leverage Ratio—are the primary measures of its leverage activity. The Financial Leverage Ratio fluctuates within a relatively narrow range, predominantly between approximately 2.37 and 2.81 throughout the periods under review. The ratio demonstrates a slight upward trend from approximately 2.37 in March 2021 to around 2.81 in March 2023, followed by minor fluctuations around 2.55 to 2.65 thereafter.
Given that a Financial Leverage Ratio around 2.5 to 2.7 indicates that the company's assets are approximately 2.5 to 2.7 times the equity, the data suggest that Viavi Solutions Inc. operates with moderate leveraging, primarily financed by equity rather than debt. The consistently low or zero debt ratios coupled with leverage ratios near these levels point towards a conservatively financed balance sheet, with minimal reliance on external debt to fund operations or growth.
Overall, the solvency profile of Viavi Solutions Inc. is characterized by very low leverage, with no significant reported debt to impede its ability to meet obligations. This structural characteristic may imply a focus on equity financing, a cautious approach to leverage, or the possibility that debt instruments are not prominently reported or accounted for within the presented metrics. However, from the given data, the company's financial stability concerning solvency appears robust and resilient, primarily driven by equity capital, with limited or no debt obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.01 | 0.69 | 1.02 | 0.68 | 1.05 | 1.42 | 1.61 | 1.98 | 2.80 | 4.34 | 5.06 | 4.89 | 0.84 | 0.68 | 0.82 | 0.97 | 9.39 | 10.13 | 7.38 | 6.12 |
The interest coverage ratio of Viavi Solutions Inc. has experienced notable fluctuations over the analyzed period, reflecting variable capacity to meet interest obligations with operating income. Initially, as of September 30, 2020, the ratio stood at 6.12, indicating a comfortable buffer above interest expenses. This upward trend continued, reaching a peak of 10.13 on March 31, 2021, suggesting a period of strong earnings relative to interest commitments.
However, beginning in September 2021, a significant decline is observed, with the ratio dropping sharply to 0.97. This decrease persisted through December 2021 (0.82), and March 2022 (0.68), indicating a substantial deterioration in the company's ability to cover interest expenses from operating earnings. The ratio experienced a modest recovery in the subsequent periods, reaching 4.89 in September 2022 and fluctuating around similar levels into 2023, suggesting some stabilization in earnings relative to interest obligations.
Despite the partial recovery, the interest coverage remained below the critical threshold of 3.0 in later periods, signaling ongoing challenges in comfortably covering interest expenses solely from operating income. The ratios continued to fluctuate in the range of approximately 0.68 to 1.61 from September 2023 to December 2024, and further declined to 0.69 in March 2025 before slightly rebounding to 1.01 in June 2025.
Overall, the data indicates that Viavi Solutions Inc. experienced a period of robust interest coverage through early 2021, followed by a period of weakened capacity to cover interest expenses, with ratios frequently below 2.0. This pattern suggests heightened financial risk related to interest obligations during the latter part of the analyzed timeframe, highlighting potential concerns regarding the company's earnings stability and debt servicing capacity.