Ciena Corp (CIEN)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 2,939,379 | 2,849,281 | 2,814,309 |
| Property, plant and equipment | US$ in thousands | 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 | 295,900 | 298,600 | 318,835 |
| Fixed asset turnover | 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 | 9.93 | 9.54 | 8.83 |
January 27, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,367,750K ÷ $280,357K
= 15.58
The fixed asset turnover ratio measures a company's ability to generate revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is more efficient in utilizing its fixed assets to generate sales.
For CIENA Corp., the fixed asset turnover ratio has been relatively stable and consistently high over the past few quarters, ranging from 13.15 to 15.66. This indicates that CIENA is effectively utilizing its fixed assets to generate revenue.
The slight fluctuations in the ratio from quarter to quarter are normal and may be influenced by various factors such as seasonality, changes in production levels, or efficiency improvements in operations.
Overall, CIENA Corp.'s high and stable fixed asset turnover ratios suggest that the company is efficiently using its fixed assets to generate sales, which is a positive indicator of its operational performance.
Peer comparison
Jan 27, 2024