Ciena Corp (CIEN)
Days of sales outstanding (DSO)
| Nov 2, 2024 | Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.21 | 4.23 | 3.84 | 4.01 | 4.76 | |
| DSO | days | 86.78 | 86.31 | 94.93 | 91.07 | 76.61 |
November 2, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.21
= 86.78
Days Sales Outstanding (DSO) is a metric used to evaluate how efficiently a company is managing its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly, while a higher DSO suggests slower collections.
Analyzing Ciena Corp's DSO over the past five years, we observe the following trend:
- In November 2024, DSO stood at 86.78 days, showing a slight increase compared to the previous year.
- In October 2023, DSO was 86.31 days, indicating a relatively stable collection period.
- In October 2022, DSO increased to 94.93 days, suggesting a longer collection period compared to the prior year.
- In October 2021, DSO was 91.07 days, showing a decrease from the peak in 2022 but still higher than earlier years.
- In October 2020, DSO was at its lowest point at 76.61 days, indicating a significant improvement in collections efficiency compared to the subsequent years.
Overall, Ciena Corp's DSO has fluctuated over the past five years, with some periods showing improvements in collections efficiency, while others reflecting longer collection periods. It is important for the company to effectively manage its accounts receivable to ensure timely cash flow and maintain financial stability.
Peer comparison
Nov 2, 2024