An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Adjustments to Financial Statements for Operating Leases
Adjusted Financial Ratios for Operating Leases (Summary)
Adjusted Total Asset Turnover
Adjusted Debt to Equity
Adjusted Return on Assets (ROA)

Lumentum Holdings Inc., adjustments to financial statements

US$ in thousands

	Jun 28, 2025	Jun 29, 2024	Jul 1, 2023	Jul 2, 2022	Jul 3, 2021	Jun 27, 2020
Adjustment to Total Assets
Total assets (as reported)	4,218,700)	3,931,900)	4,632,100)	4,162,200)	3,551,600)	3,292,600)
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)¹	—)	—)	—)	—)	—)	—)
Total assets (adjusted)	4,218,700)	3,931,900)	4,632,100)	4,162,200)	3,551,600)	3,292,600)
Adjustment to Total Debt
Total debt (as reported)	2,573,200)	2,503,200)	2,811,600)	1,876,000)	1,180,500)	1,120,900)
Add: Operating lease liability (before adoption of FASB Topic 842)²	—)	—)	—)	—)	—)	—)
Add: Operating lease liabilities, current	11,400)	13,400)	14,400)	11,200)	11,800)	10,800)
Add: Operating lease liabilities, non-current	23,600)	43,000)	47,700)	48,800)	47,600)	57,600)
Total debt (adjusted)	2,608,200)	2,559,600)	2,873,700)	1,936,000)	1,239,900)	1,189,300)

Based on: 10-K (reporting date: 2025-06-28), 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27).

^{1, 2} Equal to total present value of future operating lease payments.

Lumentum Holdings Inc., Financial Data: Reported vs. Adjusted

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Lumentum Holdings Inc., adjusted financial ratios

	Jun 28, 2025	Jun 29, 2024	Jul 1, 2023	Jul 2, 2022	Jul 3, 2021	Jun 27, 2020
Total Asset Turnover¹
Reported total asset turnover	0.39	0.35	0.38	0.41	0.49	0.51
Adjusted total asset turnover	0.39	0.35	0.38	0.41	0.49	0.51
Debt to Equity²
Reported debt to equity	2.27	2.61	2.07	1.00	0.60	0.64
Adjusted debt to equity	2.30	2.67	2.12	1.03	0.63	0.68
Return on Assets³ (ROA)
Reported ROA	0.61%	-13.90%	-2.84%	4.78%	11.19%	4.12%
Adjusted ROA	0.61%	-13.90%	-2.84%	4.78%	11.19%	4.12%

Based on: 10-K (reporting date: 2025-06-28), 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27).

¹ See details »

² See details »

³ See details »

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Lumentum Holdings Inc. adjusted total asset turnover ratio deteriorated from 2023 to 2024 but then improved from 2024 to 2025 exceeding 2023 level.
Adjusted debt to equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	Lumentum Holdings Inc. adjusted debt to equity ratio deteriorated from 2023 to 2024 but then improved from 2024 to 2025 not reaching 2023 level.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Lumentum Holdings Inc. adjusted ROA deteriorated from 2023 to 2024 but then improved from 2024 to 2025 exceeding 2023 level.

Lumentum Holdings Inc., Financial Ratios: Reported vs. Adjusted

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	Jun 28, 2025	Jun 29, 2024	Jul 1, 2023	Jul 2, 2022	Jul 3, 2021	Jun 27, 2020
As Reported
Selected Financial Data (US$ in thousands)
Net revenue	1,645,000)	1,359,200)	1,767,000)	1,712,600)	1,742,800)	1,678,600)
Total assets	4,218,700)	3,931,900)	4,632,100)	4,162,200)	3,551,600)	3,292,600)
Activity Ratio
Total asset turnover¹	0.39	0.35	0.38	0.41	0.49	0.51
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Net revenue	1,645,000)	1,359,200)	1,767,000)	1,712,600)	1,742,800)	1,678,600)
Adjusted total assets	4,218,700)	3,931,900)	4,632,100)	4,162,200)	3,551,600)	3,292,600)
Activity Ratio
Adjusted total asset turnover²	0.39	0.35	0.38	0.41	0.49	0.51

Based on: 10-K (reporting date: 2025-06-28), 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27).

2025 Calculations

¹ Total asset turnover = Net revenue ÷ Total assets
= 1,645,000 ÷ 4,218,700 = 0.39

² Adjusted total asset turnover = Net revenue ÷ Adjusted total assets
= 1,645,000 ÷ 4,218,700 = 0.39

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Lumentum Holdings Inc. adjusted total asset turnover ratio deteriorated from 2023 to 2024 but then improved from 2024 to 2025 exceeding 2023 level.

	Jun 28, 2025	Jun 29, 2024	Jul 1, 2023	Jul 2, 2022	Jul 3, 2021	Jun 27, 2020
As Reported
Selected Financial Data (US$ in thousands)
Total debt	2,573,200)	2,503,200)	2,811,600)	1,876,000)	1,180,500)	1,120,900)
Stockholders’ equity	1,134,700)	957,300)	1,355,800)	1,875,000)	1,972,800)	1,749,200)
Solvency Ratio
Debt to equity¹	2.27	2.61	2.07	1.00	0.60	0.64
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Adjusted total debt	2,608,200)	2,559,600)	2,873,700)	1,936,000)	1,239,900)	1,189,300)
Stockholders’ equity	1,134,700)	957,300)	1,355,800)	1,875,000)	1,972,800)	1,749,200)
Solvency Ratio
Adjusted debt to equity²	2.30	2.67	2.12	1.03	0.63	0.68

Based on: 10-K (reporting date: 2025-06-28), 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27).

2025 Calculations

¹ Debt to equity = Total debt ÷ Stockholders’ equity
= 2,573,200 ÷ 1,134,700 = 2.27

² Adjusted debt to equity = Adjusted total debt ÷ Stockholders’ equity
= 2,608,200 ÷ 1,134,700 = 2.30

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Solvency ratio	Description	The company
Adjusted debt-to-equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	Lumentum Holdings Inc. adjusted debt-to-equity ratio deteriorated from 2023 to 2024 but then improved from 2024 to 2025 not reaching 2023 level.

	Jun 28, 2025	Jun 29, 2024	Jul 1, 2023	Jul 2, 2022	Jul 3, 2021	Jun 27, 2020
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss)	25,900)	(546,500)	(131,600)	198,900)	397,300)	135,500)
Total assets	4,218,700)	3,931,900)	4,632,100)	4,162,200)	3,551,600)	3,292,600)
Profitability Ratio
ROA¹	0.61%	-13.90%	-2.84%	4.78%	11.19%	4.12%
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Net income (loss)	25,900)	(546,500)	(131,600)	198,900)	397,300)	135,500)
Adjusted total assets	4,218,700)	3,931,900)	4,632,100)	4,162,200)	3,551,600)	3,292,600)
Profitability Ratio
Adjusted ROA²	0.61%	-13.90%	-2.84%	4.78%	11.19%	4.12%

Based on: 10-K (reporting date: 2025-06-28), 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27).

2025 Calculations

¹ ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 25,900 ÷ 4,218,700 = 0.61%

² Adjusted ROA = 100 × Net income (loss) ÷ Adjusted total assets
= 100 × 25,900 ÷ 4,218,700 = 0.61%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Lumentum Holdings Inc. adjusted ROA deteriorated from 2023 to 2024 but then improved from 2024 to 2025 exceeding 2023 level.

Lumentum Holdings Inc. (NASDAQ:LITE)

Analysis of Operating Leases

Adjustments to Financial Statements for Operating Leases

Lumentum Holdings Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios for Operating Leases (Summary)

Lumentum Holdings Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Debt to Equity

Adjusted Return on Assets (ROA)