Forensic Analysis · Technology / Software · as of Jun 27, 2026
VIAVI SOLUTIONS INC. (VIAV)
A forensic read on VIAVI SOLUTIONS INC. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Distress
Financial health
-112.0
Altman Z-score
Clean
Earnings quality
5
Forensic signals
-6.9%
ROE
$11.1B
Market cap
VIAVI SOLUTIONS INC. earns a C (Mixed — selective) forensic quality grade, and its Altman Z-score is -112.0, placing it in the Distress zone. 5 forensic signals were flagged in its latest SEC filings, led by accruals ratio.
What the filings flag
+96.5%Accruals ratio.Net operating assets grew +96.5% relative to their average in FY2025 — the accrual component of earnings. Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The cash-flow cross-check agrees: reported earnings ran behind operating cash by -14% of net operating assets.
4%Return on invested capital.Return on invested capital is 4% and slipping from 11% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
5% of revStock-based comp load.Stock-based compensation ran 5% of revenue and 86% of free cash flow in FY2025 — about $0.24 per diluted share. Heavy — a large slice of 'free cash flow' is really being paid out in stock, so the true owner cash per share is well below the headline.
88d DSOReceivables vs revenue.Days sales outstanding moved from 78 to 88 days FY2024→FY2025 (receivables +22% vs revenue +8%). Receivables are creeping up relative to sales — watch the trend.
93dInventory days.Days inventory outstanding moved from 83 to 93 FY2024→FY2025 (against cost of goods sold; inventory +22% vs +9% in cost of sales). Inventory is building a little faster than sales — watch for markdowns.
Key fundamentals
Net Margin3.2%
Debt / Equity0.60x
Free Cash Flow$62.0M
Latest Revenue$1.08B
Return on Equity4.5%
Revenue Growth YoY+8.4%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on VIAVI SOLUTIONS INC.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about VIAV's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown