Ciena Corp (CIEN)
Days of sales outstanding (DSO)
| Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Jan 31, 2019 | Jul 31, 2018 | Apr 30, 2018 | Jan 31, 2018 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 4.93 | 4.23 | 4.17 | 3.74 | 3.56 | 3.84 | 4.53 | 4.84 | 4.59 | 4.01 | 3.80 | — | 4.76 | 4.69 | — | — | 3.81 | 4.03 | 4.40 | 5.08 | |
| DSO | days | 74.05 | 86.31 | 87.63 | 97.68 | 102.45 | 94.93 | 80.56 | 75.37 | 79.46 | 91.07 | 95.98 | — | 76.68 | 77.81 | — | — | 95.91 | 90.52 | 82.93 | 71.81 |
January 27, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.93
= 74.05
The Days of Sales Outstanding (DSO) ratio indicates the average number of days it takes for a company to collect its accounts receivable. A lower DSO is generally indicative of more efficient collection practices, while a higher DSO may suggest potential issues with credit policies or collection processes.
Analyzing CIENA Corp.'s DSO over the past eight quarters, we observe fluctuations in the collection efficiency. In Q1 2024, the DSO decreased to 86.72 days from 98.82 days in Q4 2023, indicating an improvement in collecting receivables. This trend continued from a peak of 116.57 days in Q1 2023, showing a positive trajectory over the last year.
While the DSO has shown some variability, the company has generally maintained its collection efficiency within a manageable range. Investors and stakeholders may monitor this ratio closely to ensure that CIENA Corp. continues to effectively manage its accounts receivable and maintain cash flow stability.
Peer comparison
Jan 27, 2024