Ciena Corp (CIEN)
Cash conversion cycle
| Nov 2, 2024 | Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 130.46 | 152.95 | 166.75 | 71.95 | 66.89 |
| Days of sales outstanding (DSO) | days | 86.78 | 86.31 | 94.93 | 91.07 | 76.61 |
| Number of days of payables | days | 67.33 | 46.26 | 90.89 | 68.47 | 56.69 |
| Cash conversion cycle | days | 149.91 | 193.00 | 170.79 | 94.55 | 86.80 |
November 2, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 130.46 + 86.78 – 67.33
= 149.91
The cash conversion cycle for Ciena Corp has fluctuated over the past five years. In the most recent period ending on November 2, 2024, the cash conversion cycle was 149.91 days, representing a decrease from the previous year's figure of 193.00 days. This improvement suggests that Ciena Corp was able to manage its cash flows more efficiently in converting its investments in inventory and accounts receivable into cash during the latest period.
Comparing the current cash conversion cycle with the figures from earlier years, we observe that the cycle was higher in the years ending on October 28, 2023 (193.00 days) and October 29, 2022 (170.79 days) compared to the latest period. However, in the years ending on October 30, 2021 (94.55 days) and October 31, 2020 (86.80 days), the cash conversion cycle was lower, indicating that Ciena Corp was more efficient in managing its working capital during those periods.
Overall, the downward trend in the cash conversion cycle over the past five years suggests that Ciena Corp has made improvements in managing its cash flows and working capital efficiency. This metric is crucial for assessing the company's ability to convert its investments in inventory and accounts receivable into cash, and the recent decrease in the cycle indicates positive developments in this aspect of Ciena Corp's financial performance.
Peer comparison
Nov 2, 2024