Ciena Corp (CIEN)
Cash ratio
| Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | Oct 31, 2017 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,010,620 | 994,352 | 1,422,550 | 1,088,620 | 640,513 |
| Short-term investments | US$ in thousands | 104,753 | 153,989 | 181,483 | 150,667 | 279,133 |
| Total current liabilities | US$ in thousands | 932,021 | 1,040,580 | 909,030 | 760,701 | 1,037,740 |
| Cash ratio | 1.20 | 1.10 | 1.76 | 1.63 | 0.89 |
October 28, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,010,620K
+ $104,753K)
÷ $932,021K
= 1.20
The cash ratio of CIENA Corp. has shown some fluctuations over the past five years. In the most recent period, as of October 28, 2023, the cash ratio stood at 1.43. This represents a moderate increase compared to the prior year, where it was 1.29 as of October 29, 2022. However, it is notable that the cash ratio was higher in the two preceding years, reaching 1.99 as of October 30, 2021, and 1.89 as of October 31, 2020. In the earliest year provided, the cash ratio was 1.52 as of October 31, 2019.
The cash ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio is generally favorable as it suggests that the company has sufficient liquid assets to meet its short-term obligations. The fluctuations in CIENA Corp.'s cash ratio over the years may reflect changes in the company's cash reserves relative to its short-term liabilities. Further analysis of the company's cash management and liquidity position would be necessary to better understand the reasons behind these fluctuations and to assess the overall financial health of the company.
Peer comparison
Oct 28, 2023