Ciena Corp (CIEN)
Payables 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 |
| Payables | US$ in thousands | 423,401 | 317,828 | 516,047 | 356,176 | 291,904 |
| Payables turnover | 5.42 | 7.89 | 4.02 | 5.33 | 6.44 |
November 2, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,295,360K ÷ $423,401K
= 5.42
The payables turnover ratio for Ciena Corp has been fluctuating over the past five years. In the most recent fiscal year ending November 2, 2024, the payables turnover ratio stood at 5.42, indicating that the company paid its suppliers approximately 5.42 times during the year. This represents a decrease from the previous year's ratio of 7.89.
The trend over the five-year period shows variations in the efficiency of Ciena Corp in managing its accounts payable. The highest payables turnover ratio was observed in October 28, 2023, at 7.89, suggesting a more rapid turnover of payables that year. However, the ratio decreased to 4.02 in October 29, 2022, before rebounding to 5.33 in October 30, 2021, and further to 6.44 in October 31, 2020.
Overall, the payables turnover ratio provides insights into how effectively Ciena Corp is managing its outstanding payables and the speed at which it pays its suppliers. It is important for the company to find a balance in paying suppliers promptly while maintaining good relationships and cash flow management.
Peer comparison
Nov 2, 2024