Ciena Corp (CIEN)
Payables 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 |
| Payables | US$ in thousands | 423,401 | 316,599 | 332,106 | 316,094 | 317,828 | 393,144 | 444,769 | 478,486 | 516,047 | 439,229 | 352,999 | 310,107 | 356,176 | 301,606 | 279,247 | 247,241 | 291,904 | 297,163 | 292,164 | 335,547 |
| Payables turnover | 5.42 | 7.18 | 7.09 | 7.84 | 7.89 | 6.11 | 5.19 | 4.62 | 4.02 | 4.78 | 5.91 | 6.32 | 5.33 | 5.83 | 6.29 | 7.35 | 6.41 | 6.45 | 6.30 | 5.17 |
November 2, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,295,365K ÷ $423,401K
= 5.42
The payables turnover ratio of Ciena Corp has varied over the recent periods, indicating the company's efficiency in managing its accounts payable. The ratio measures how many times a company pays off its average accounts payable balance during a certain period. A higher turnover ratio generally suggests that the company is paying off its suppliers more frequently.
From January 31, 2019, to November 2, 2024, Ciena Corp's payables turnover ratio has fluctuated between 4.02 and 7.84. The average payables turnover ratio during this period is approximately 6.17. The trend shows an overall increase from 2019 to 2024, with some fluctuations from quarter to quarter.
A higher payables turnover ratio may indicate that Ciena Corp is efficiently managing its working capital by paying suppliers promptly. This can signal good relationships with suppliers and potentially negotiate better terms in the future. On the other hand, a very high ratio could suggest that the company is not taking full advantage of credit terms offered by suppliers.
It is important for investors and stakeholders to monitor payables turnover along with other financial ratios to assess the company's overall financial health and liquidity management.
Peer comparison
Nov 2, 2024