Ciena Corp (CIEN)

To analyze CIENA Corp.'s days of sales outstanding (DSO) over the past five years, we observe a fluctuating trend. The days of sales outstanding measure the average number of days it takes for the company to collect revenue after a sale is made. A higher DSO indicates a longer time for the company to collect its accounts receivable.

In the fiscal year ending October 28, 2023, CIENA Corp.'s DSO stood at 98.82 days, showing a decrease from the previous year's 110.61 days. This decrease indicates an improvement in the company's ability to collect its receivables, which may be attributed to more efficient collection practices or a shift in the company's customer base.

Looking at the DSO over the past five years, we observe a general upward trend from 76.94 days as of October 31, 2019, to 110.61 days as of October 29, 2022. This increase suggests a potential issue with the company's accounts receivable management or customer creditworthiness during this period.

In contrast, the decrease in DSO to 98.82 days as of October 28, 2023, indicates a positive development, but it is important to consider the factors contributing to this change, such as changes in sales volume, customer payment behavior, or credit terms.

Overall, the fluctuation in CIENA Corp.'s DSO highlights the importance of closely monitoring the company's accounts receivable management and collection efforts to ensure efficient cash flow and optimal working capital management.

Peer comparison

Oct 28, 2023