Ciena Corp (CIEN)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,295,365 | 2,274,481 | 2,355,063 | 2,477,870 | 2,507,698 | 2,401,905 | 2,310,162 | 2,212,636 | 2,072,317 | 2,099,271 | 2,085,660 | 1,959,722 | 1,898,705 | 1,758,469 | 1,756,909 | 1,816,128 | 1,872,075 | 1,915,218 | 1,839,858 | 1,733,501 |
| Inventory | US$ in thousands | 820,430 | 937,399 | 1,022,620 | 984,886 | 1,050,840 | 1,192,520 | 1,098,090 | 1,178,090 | 946,730 | 826,673 | 536,878 | 457,604 | 374,265 | 370,170 | 401,233 | 389,733 | 344,379 | 363,600 | 325,753 | 323,106 |
| Inventory turnover | 2.80 | 2.43 | 2.30 | 2.52 | 2.39 | 2.01 | 2.10 | 1.88 | 2.19 | 2.54 | 3.88 | 4.28 | 5.07 | 4.75 | 4.38 | 4.66 | 5.44 | 5.27 | 5.65 | 5.37 |
November 2, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,295,365K ÷ $820,430K
= 2.80
Ciena Corp's inventory turnover ratio has fluctuated over the past years, indicating the efficiency with which the company manages its inventory. The trend shows some variability, with the ratio ranging from a low of 1.88 to a high of 5.65.
In general, the inventory turnover ratio measures how many times a company sells and replaces its inventory during a specific period. A higher turnover ratio implies that the company is selling its inventory more frequently, which could indicate strong sales or effective inventory management.
Looking at Ciena Corp's data, we observe that there has been a general upward trend in the inventory turnover ratio. In recent years, the ratio has consistently stayed above 2, peaking at 5.65 in October 2020. This suggests that Ciena Corp has been improving its inventory management efficiency, possibly through better forecasting, production planning, or inventory control.
However, it's worth noting that the ratio dipped slightly in the most recent period to 2.80, which may warrant further investigation. This decrease could be due to various factors such as changes in demand, production disruptions, or supply chain issues.
Overall, Ciena Corp's inventory turnover ratio analysis indicates positive trends in inventory management efficiency, but it would be beneficial to closely monitor any fluctuations and investigate the underlying reasons for any significant changes.
Peer comparison
Nov 2, 2024
Nov 2, 2024