Ciena Corp (CIEN)
Total asset 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 |
| Total assets | US$ in thousands | 5,601,500 | 5,069,630 | 4,865,230 | 4,180,920 | 3,951,710 |
| Total asset turnover | 0.78 | 0.72 | 0.74 | 0.84 | 0.71 |
October 28, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,386,550K ÷ $5,601,500K
= 0.78
Total asset turnover measures a company's ability to generate revenue from its total assets. It is calculated by dividing the company's total revenue by its average total assets. A higher total asset turnover generally indicates that the company is more efficient in utilizing its assets to generate sales.
Over the past five years, CIENA Corp.'s total asset turnover has shown a declining trend. In fiscal year 2019, the total asset turnover was at its highest level of 0.92, indicating that the company generated $0.92 in sales for every dollar of total assets. However, the ratio has been decreasing since then, reaching 0.78 in the most recent fiscal year, signifying a decline in the efficiency of asset utilization to generate revenue.
This declining trend may raise concerns about the company's asset utilization efficiency and its ability to generate sales from its existing assets. It suggests that CIENA Corp. may need to focus on improving its asset management and operational efficiency to better leverage its assets for revenue generation in the future.
Peer comparison
Oct 28, 2023