Ciena Corp (CIEN)
Cash ratio
| Nov 2, 2024 | Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 934,863 | 1,010,620 | 994,352 | 1,422,550 | 1,088,620 |
| Short-term investments | US$ in thousands | 316,343 | 104,753 | 153,989 | 181,483 | 150,667 |
| Total current liabilities | US$ in thousands | 999,840 | 932,021 | 1,040,580 | 909,030 | 760,701 |
| Cash ratio | 1.25 | 1.20 | 1.10 | 1.76 | 1.63 |
November 2, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($934,863K
+ $316,343K)
÷ $999,840K
= 1.25
The cash ratio of Ciena Corp has fluctuated over the past five years. As of November 2, 2024, the cash ratio stood at 1.25, indicating that the company had $1.25 in cash and cash equivalents available for every $1 of current liabilities. This represents a slight increase from the previous year's ratio of 1.20.
Compared to the cash ratios of the two preceding years, the current ratio has shown an upward trend, indicating improved liquidity position. However, it is still lower than the ratios reported in October 30, 2021, and October 31, 2020, where the company had significantly more cash on hand relative to its current liabilities.
Overall, a cash ratio above 1.0 is generally considered healthy as it suggests the company has sufficient liquid assets to cover its short-term obligations. Ciena Corp's cash ratio has been above this benchmark in all the years provided, indicating a strong liquidity position. However, management should continue to monitor the ratio to ensure the company maintains adequate cash reserves to meet its financial obligations.
Peer comparison
Nov 2, 2024