Ciena Corp (CIEN)
Working capital turnover
| Nov 2, 2024 | Jul 27, 2024 | Apr 27, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,014,954 | 4,020,334 | 4,145,916 | 4,367,750 | 4,386,560 | 4,228,080 | 4,028,171 | 3,844,738 | 3,632,661 | 3,703,141 | 3,823,301 | 3,708,001 | 3,620,688 | 3,407,678 | 3,396,249 | 3,456,375 | 3,477,772 | 3,468,109 | 3,221,375 | 2,973,457 |
| Total current assets | US$ in thousands | 3,544,420 | 3,538,460 | 3,541,350 | 3,608,750 | 3,575,780 | 3,811,350 | 3,868,630 | 3,762,570 | 3,385,900 | 3,188,380 | 3,228,530 | 3,164,110 | 3,188,910 | 2,984,130 | 2,794,450 | 2,596,540 | 2,611,160 | 2,567,880 | 2,340,210 | 2,089,670 |
| Total current liabilities | US$ in thousands | 999,840 | 870,559 | 912,191 | 841,306 | 932,021 | 965,741 | 1,057,930 | 1,018,210 | 1,040,580 | 915,342 | 868,758 | 760,328 | 909,030 | 827,091 | 782,676 | 684,767 | 760,701 | 720,491 | 712,986 | 700,760 |
| Working capital turnover | 1.58 | 1.51 | 1.58 | 1.58 | 1.66 | 1.49 | 1.43 | 1.40 | 1.55 | 1.63 | 1.62 | 1.54 | 1.59 | 1.58 | 1.69 | 1.81 | 1.88 | 1.88 | 1.98 | 2.14 |
November 2, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,014,954K ÷ ($3,544,420K – $999,840K)
= 1.58
The working capital turnover ratio for Ciena Corp has fluctuated over the past several periods, ranging from 1.40 to 2.14. This ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher turnover ratio generally suggests that the company is effectively managing its liquidity and is efficient in converting its current assets into sales.
On analyzing the trend, we observe some variations in the working capital turnover ratio, which could be influenced by changes in the company's operating cycle, sales volume, or management of current assets and liabilities. The fluctuations in the ratio indicate a need for further investigation into the company's working capital management practices and operational efficiency.
It is essential for Ciena Corp to closely monitor its working capital turnover ratio to ensure optimal utilization of resources and maintain financial stability. By identifying the factors impacting this ratio, the company can make informed decisions to improve efficiency and profitability in the long term.
Peer comparison
Nov 2, 2024