Ciena Corp (CIEN)
Receivables turnover
| Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | Oct 31, 2017 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,386,550 | 3,632,660 | 3,620,680 | 3,532,160 | 2,801,690 |
| Receivables | US$ in thousands | 1,037,280 | 944,798 | 903,366 | 741,386 | 633,887 |
| Receivables turnover | 4.23 | 3.84 | 4.01 | 4.76 | 4.42 |
October 28, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,386,550K ÷ $1,037,280K
= 4.23
The receivables turnover ratio for CIENA Corp. has shown some fluctuations over the past five years. The ratio indicates the efficiency with which the company is able to collect outstanding receivables from its customers. A higher ratio is generally preferred as it suggests a quicker turnover of receivables and efficient management of credit sales.
The receivables turnover ratio for CIENA Corp. was 3.69 in 2023, which demonstrates an improvement compared to the previous year's ratio of 3.30. This indicates that the company was able to collect receivables more frequently during the most recent year. However, it's important to note that this ratio has still not reached the levels observed in 2019 and 2020, when the ratios were 4.74 and 4.27 respectively, suggesting that the company's efficiency in collecting receivables was higher during those periods.
Overall, it's essential for CIENA Corp. to continue monitoring and managing its receivables turnover effectively to ensure timely collection of outstanding receivables, which in turn can enhance the company's cash flow and overall financial stability.
Peer comparison
Oct 28, 2023