Ciena Corp (CIEN)
Cash conversion cycle
| Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | Oct 31, 2017 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 152.95 | 166.75 | 71.95 | 66.89 | 62.67 |
| Days of sales outstanding (DSO) | days | 86.31 | 94.93 | 91.07 | 76.61 | 82.58 |
| Number of days of payables | days | 46.26 | 90.89 | 68.47 | 56.69 | 61.02 |
| Cash conversion cycle | days | 193.00 | 170.79 | 94.55 | 86.80 | 84.23 |
October 28, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 152.95 + 86.31 – 46.26
= 193.00
The cash conversion cycle of CIENA Corp. has seen fluctuations over the past five years. In the most recent period, the cash conversion cycle increased to 205.51 days from 186.47 days in the prior year. This indicates that the company took longer to convert its investments in inventory and other resources into cash during the most recent period.
Comparing the data with previous years, there has been an overall increasing trend in the cash conversion cycle, with significant spikes in 2021 and 2020. This trend suggests that CIENA Corp. may be experiencing challenges in efficiently managing its working capital and converting its assets into cash.
The longer cash conversion cycle could indicate potential issues with inventory management, extended accounts receivable periods, or delays in paying accounts payable. This can have implications for the company's liquidity and operational efficiency.
It would be important for CIENA Corp. to closely monitor and address the factors contributing to the lengthening cash conversion cycle in order to improve cash flow and overall financial performance.
Peer comparison
Oct 28, 2023