Ciena Corp (CIEN)
Number of days of payables
| Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | Oct 31, 2017 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 7.89 | 4.02 | 5.33 | 6.44 | 5.98 | |
| Number of days of payables | days | 46.26 | 90.89 | 68.47 | 56.69 | 61.02 |
October 28, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 7.89
= 46.26
The number of days of payables ratio measures how long it takes a company to pay its trade payables. A lower number suggests that the company is paying its suppliers more quickly, whereas a higher number indicates that the company is taking longer to pay its suppliers.
Looking at CIENA Corp.'s number of days of payables over the past five years, we can observe the following trends:
- Oct 28, 2023: 46.26 days
- Oct 29, 2022: 90.89 days
- Oct 30, 2021: 68.47 days
- Oct 31, 2020: 56.69 days
- Oct 31, 2019: 62.00 days
The trend in the number of days of payables for CIENA Corp. indicates some variability. The number of days of payables decreased significantly from 90.89 days in 2022 to 46.26 days in 2023, suggesting that CIENA Corp. was able to manage its trade payables more efficiently in the most recent year.
A decrease in the number of days of payables can be a positive sign as it may indicate that the company has negotiated better payment terms with its suppliers, improved its working capital management, or strengthened its financial position. However, it's important to consider the specific circumstances of the company and its industry when interpreting this ratio.
In summary, CIENA Corp.'s number of days of payables has shown variability over the past five years, with a significant decrease in the most recent year. This could indicate improved efficiency in paying its trade payables. Nevertheless, further analysis of the company's financial health and operational strategies is necessary to fully interpret the implications of this trend.
Peer comparison
Oct 28, 2023