Ciena Corp (CIEN)
Receivables turnover
| Nov 2, 2024 | Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,014,960 | 4,386,550 | 3,632,660 | 3,620,680 | 3,532,160 |
| Receivables | US$ in thousands | 954,532 | 1,037,280 | 944,798 | 903,366 | 741,386 |
| Receivables turnover | 4.21 | 4.23 | 3.84 | 4.01 | 4.76 |
November 2, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,014,960K ÷ $954,532K
= 4.21
The receivables turnover ratio for Ciena Corp has been relatively stable over the past five years, ranging from 3.84 to 4.76. This ratio measures how efficiently the company is able to collect outstanding receivables from its customers during a specific period. A higher turnover ratio indicates that the company is effectively collecting payments from its customers, while a lower ratio may suggest difficulties in collecting receivables in a timely manner.
In this case, Ciena Corp's receivables turnover has been around 4, indicating that the company is able to collect on its credit sales approximately four times a year. This implies a good level of efficiency in managing its accounts receivable and converting credit sales into cash. The slight variations in the ratio over the years may be due to changes in the company's credit policies, customer payment behaviors, or industry conditions.
Overall, a stable and relatively high receivables turnover ratio suggests that Ciena Corp has been successful in managing its receivables effectively and efficiently, which is a positive indicator of its financial health.
Peer comparison
Nov 2, 2024