Ciena Corp (CIEN)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,014,954 | 4,020,334 | 4,145,916 | 4,367,750 | 4,386,560 | 4,228,080 | 4,028,171 | 3,844,738 | 3,632,661 | 3,703,141 | 3,823,301 | 3,708,001 | 3,620,688 | 3,407,678 | 3,396,249 | 3,456,375 | 3,477,772 | 3,468,109 | 3,221,375 | 2,973,457 |
| Property, plant and equipment | US$ in thousands | 304,389 | 299,161 | 274,353 | 280,357 | 242,322 | 287,500 | 278,344 | 278,985 | 224,798 | 281,690 | 278,494 | 276,120 | 232,872 | 235,985 | 243,389 | 227,216 | 219,423 | 213,299 | 308,731 | 288,700 |
| Fixed asset turnover | 13.19 | 13.44 | 15.11 | 15.58 | 18.10 | 14.71 | 14.47 | 13.78 | 16.16 | 13.15 | 13.73 | 13.43 | 15.55 | 14.44 | 13.95 | 15.21 | 15.85 | 16.26 | 10.43 | 10.30 |
November 2, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,014,954K ÷ $304,389K
= 13.19
Fixed asset turnover indicates how efficiently a company is using its fixed assets to generate revenue. A higher fixed asset turnover ratio suggests that the company is generating more sales per dollar of fixed assets.
Analyzing Ciena Corp's fixed asset turnover over the past several periods, we can observe fluctuations in the ratio. The ratio has ranged from a low of 10.30 to a high of 18.10, demonstrating some variability in how effectively the company is utilizing its fixed assets to generate revenue.
Overall, the trend appears to show a generally stable and healthy utilization of fixed assets, with the ratio averaging around 14-15 over the periods analyzed. This suggests that Ciena Corp is efficiently utilizing its fixed assets to generate sales, which is a positive indicator of operational efficiency and effectiveness in utilizing its capital investments.
It is essential to continue monitoring the fixed asset turnover ratio to ensure that the company maintains its efficiency in leveraging its fixed assets to drive revenue growth and sustain profitability in the long term.
Peer comparison
Nov 2, 2024