Ciena Corp (CIEN)
Working capital 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 current assets | US$ in thousands | 3,575,780 | 3,385,900 | 3,188,910 | 2,611,160 | 2,006,310 |
| Total current liabilities | US$ in thousands | 932,021 | 1,040,580 | 909,030 | 760,701 | 1,037,740 |
| Working capital turnover | 1.66 | 1.55 | 1.59 | 1.91 | 2.89 |
October 28, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,386,550K ÷ ($3,575,780K – $932,021K)
= 1.66
The working capital turnover for CIENA Corp. has shown a fluctuating trend over the past five years. The ratio measures the efficiency of the company in using its working capital to generate sales revenue. The decrease in the working capital turnover from 2.33 in 2019 to 1.66 in 2023 indicates that the company's ability to generate sales from its working capital has declined over this period. This may suggest that the company is not effectively utilizing its working capital to support sales growth. It would be important for stakeholders to further investigate the reasons behind this trend and assess the company's working capital management strategies.
Peer comparison
Oct 28, 2023