Forensic Analysis · Semiconductors · as of Sep 25, 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.
D · Weak — demands caution
Forensic grade
Distress
Financial health
-74.8
Distress distance
Clean
Earnings quality
3
Forensic signals
-275.4
P / E (ttm)
-2.1%
ROE
$9.0B
Market cap
0.00%
Dividend yield
40.0%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Viavi Solutions Inc. earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads -74.8, placing it in the Distress zone. 3 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+53.7%
FY2025→FY2026
Accruals ratio (% of NOA).Net operating assets grew +53.7% relative to their own average in FY2026 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building sharply — a large slice of profit sits in operating assets, not cash. An accrual is a claim that still has to be collected or written down, so the gap resolves in a later period whichever way it goes. The build is led by receivables up +35% against revenue +40% and inventory up +32% against +39% in cost of sales. A cash-flow measure on the same base disagrees: reported earnings ran behind operating cash by 18% of net operating assets, against an accruals ratio of 53.7%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.
4.2%
FY2026
Return on invested capital.Return on invested capital is 4.2% in the latest fiscal year and rising across FY2024–FY2026 from 1.3%. After-tax operating profit was $14M in FY2024 and $68M in FY2026, with operating income at 2.1% of revenue in FY2024, 5.3% in FY2025 and 6.9% in FY2026. The capital base behind it grew +59% across FY2024–FY2026, from $1.0B to $1.6B, and the return did not fall doing it, so the dollars added over that window earned at least the 1.3% the older base was already earning. FY2024's operating profit carried a $14M restructuring charge that took about 0.9 points off that year's return, and FY2026's carried a $16M restructuring charge that took about 0.6 points off the latest; so, net of each other, the two charges add about 0.3 points to the +2.9-point change across FY2024–FY2026.
+1.5%/yr
FY2024–FY2026
Share-count dilution.Diluted share count changed +3% over the last 2 years to FY2026 (+1.5%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~1.5% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2024 has been diluted ~3%.
Key fundamentals
Latest Revenue$1.52B
Revenue Growth YoY+40.0%
Revenue CAGR (2yr)+23.3%
Net Margin-2.0%
Free Cash Flow$82.8M
Return on Equity-2.1%
Debt / Equity0.17x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Viavi Solutions Inc.'s actual 10-K/10-Q/8-K filings?