Ciena Corp (CIEN)
Days of sales outstanding (DSO)
| Nov 2, 2024 | Jul 27, 2024 | Apr 27, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 4.21 | 4.27 | 4.72 | 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 | |
| DSO | days | 86.78 | 85.56 | 77.40 | 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 |
November 2, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.21
= 86.78
Days Sales Outstanding (DSO) is a key financial ratio that measures the average number of days a company takes to collect revenue after a sale is made. A lower DSO indicates that the company is able to collect revenue more quickly, which is generally favorable as it signifies effective accounts receivable management.
Analyzing the trend in Ciena Corp's DSO over the past several quarters, we observe fluctuating values. The DSO varied between 74.05 days to 102.45 days over the last few quarters, with the latest DSO reported at 86.78 days. This suggests that Ciena Corp takes an average of 86.78 days to collect its accounts receivable.
While there is no defined "good" or "bad" DSO value as it varies by industry and company size, a higher DSO can indicate potential credit or collection issues, which could lead to cash flow problems. On the other hand, a consistently decreasing DSO can be a positive sign of efficient accounts receivable management.
It is worth noting that a single DSO value may not provide a complete picture of a company's financial health, and it is important to consider trends over time and compare with industry benchmarks for a more comprehensive analysis. Overall, monitoring the DSO can provide insights into Ciena Corp's effectiveness in managing its accounts receivable and cash flow.
Peer comparison
Nov 2, 2024