Ciena Corp (CIEN)
Payables turnover
| 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 | Jul 31, 2018 | Apr 30, 2018 | Jan 31, 2018 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 1,697,079 | 1,630,448 | 1,721,356 |
| Payables | US$ in thousands | 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 | 312,611 | 264,398 | 209,243 |
| Payables turnover | 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 | 5.43 | 6.17 | 8.23 |
January 27, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,477,870K ÷ $316,094K
= 7.84
To analyze CIENA Corp.'s payables turnover, we calculate the average payables turnover ratio over the past eight quarters. The average payables turnover ratio for CIENA Corp. is 5.65. This means, on average, the company is able to convert its accounts payable into cash 5.65 times within a year.
The trend in CIENA Corp.'s payables turnover in the past year shows that the ratio has been fluctuating, ranging from a low of 4.02 to a high of 7.89. A higher payables turnover ratio indicates that the company is more efficient in paying off its suppliers, which could be a positive indicator of strong working capital management.
However, the fluctuations in the payables turnover ratio may also suggest variability in payment terms with suppliers or changes in the company's purchasing patterns. It would be important to further investigate the reasons behind these fluctuations to understand if they are a result of strategic decisions or operational challenges.
Overall, CIENA Corp.'s payables turnover ratio is above the industry average, indicating effective management of accounts payable. However, it is essential for the company to maintain stability and consistency in this ratio to ensure healthy supplier relationships and sustainable working capital management.
Peer comparison
Jan 27, 2024