Ciena Corp (CIEN)
Inventory turnover
| Nov 2, 2024 | Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,295,360 | 2,507,700 | 2,072,320 | 1,898,700 | 1,879,270 |
| Inventory | US$ in thousands | 820,430 | 1,050,840 | 946,730 | 374,265 | 344,379 |
| Inventory turnover | 2.80 | 2.39 | 2.19 | 5.07 | 5.46 |
November 2, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,295,360K ÷ $820,430K
= 2.80
The inventory turnover ratio for Ciena Corp has exhibited variability over the past five years. In the most recent fiscal year as of November 2, 2024, the inventory turnover stood at 2.80, indicating that the company converted its inventory into sales approximately 2.80 times during the period. This represents an improvement compared to the prior year end ratio of 2.39 as of October 28, 2023.
However, when compared to two years ago as of October 29, 2022, and three years ago as of October 30, 2021, the inventory turnover ratios were slightly lower at 2.19 and 5.07, respectively. Notably, the inventory turnover was more efficient in generating sales three years ago compared to the most recent years.
Furthermore, the highest inventory turnover rate in the past five years was observed as of October 31, 2020, with a ratio of 5.46, indicating a quicker conversion of inventory into sales compared to the following years.
Overall, the analysis of Ciena Corp's inventory turnover suggests fluctuations in the efficiency of managing inventory levels and converting them into sales over the past five years. The company may need to assess its inventory management practices to optimize working capital utilization and improve operational efficiency.
Peer comparison
Nov 2, 2024