Ciena Corp (CIEN)

Short-term

Turnover ratios

Ciena Corp's inventory turnover has been relatively stable over the past two years, ranging from 2.01 to 5.65 times. This indicates that the company effectively manages its inventory levels, with a higher turnover generally being more favorable as it suggests faster sales of inventory.

In terms of receivables turnover, Ciena Corp has experienced fluctuations, with the ratio ranging from 3.56 to 4.93. A higher receivables turnover implies a shorter time period for the company to collect its accounts receivable, which is a positive sign of efficient credit management.

The payables turnover ratio for Ciena Corp has also varied, ranging from 4.02 to 7.89. A higher payables turnover indicates that the company is paying its suppliers more frequently, which could be beneficial for managing working capital.

The working capital turnover ratio, which reflects how efficiently the company generates revenue from its working capital investment, has ranged from 1.40 to 2.14. A higher working capital turnover signifies that the company is effectively utilizing its working capital to generate sales revenue.

Overall, Ciena Corp's activity ratios suggest that the company is managing its inventory, receivables, payables, and working capital efficiently, although there have been some fluctuations in the ratios over the past two years.

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Average number of days

Days of inventory on hand (DOH) measures how many days it takes for a company to sell its inventory. From the data provided, Ciena Corp's DOH has fluctuated over the periods, with a high of 194.34 days and a low of 67.14 days. The trend indicates some variability in managing inventory levels, which could impact cash flow and profitability.

Days of sales outstanding (DSO) indicates the average number of days it takes for a company to collect revenue after a sale is made. The DSO for Ciena Corp has also varied, ranging from 74.05 days to 102.45 days. Lower DSO values are generally favorable as they imply faster conversion of sales into cash.

Number of days of payables represents the average number of days it takes a company to pay its suppliers. Ciena Corp's payables period has shown some fluctuations as well, with a range from 46.26 days to 90.89 days. Longer payables periods can indicate favorable liquidity management, allowing the company to hold onto cash longer before paying its obligations.

Overall, Ciena Corp's activity ratios suggest fluctuations in inventory management, collection of receivables, and payment of payables over the periods analyzed. Monitoring these ratios can provide insights into the company's efficiency in managing its working capital and operational activities.

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Long-term

The fixed asset turnover ratio of Ciena Corp has been relatively stable over the period, ranging from 13.15 to 18.10. This indicates that Ciena is generating revenue efficiently from its investment in fixed assets. The higher the fixed asset turnover ratio, the better, as it suggests that the company is generating more sales from its fixed assets.

On the other hand, the total asset turnover ratio reflects how efficiently the company is using all its assets to generate revenue. Ciena Corp's total asset turnover ratio has also been consistent, with values ranging from 0.68 to 0.83. A higher total asset turnover ratio indicates that the company is utilizing its assets effectively to generate sales.

Overall, both the fixed asset turnover and total asset turnover ratios of Ciena Corp suggest that the company is effectively utilizing its assets to generate revenue, with relatively stable performance over the analyzed period.