Ciena Corp (CIEN)
Current ratio
| Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | Oct 31, 2017 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,575,780 | 3,385,900 | 3,188,910 | 2,611,160 | 2,006,310 |
| Total current liabilities | US$ in thousands | 932,021 | 1,040,580 | 909,030 | 760,701 | 1,037,740 |
| Current ratio | 3.84 | 3.25 | 3.51 | 3.43 | 1.93 |
October 28, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,575,780K ÷ $932,021K
= 3.84
The current ratio of CIENA Corp. has exhibited a positive trend over the past five years, indicating the company's improving short-term liquidity position. In the most recent fiscal year ending October 28, 2023, the current ratio stood at 3.84, up from 3.25 in the previous year. This suggests that the company's current assets are significantly higher than its current liabilities, providing a comfortable buffer to meet its short-term obligations. The trend indicates a strengthening financial position, potentially indicating improved management of working capital and a reduced risk of liquidity constraints. However, it's important to note that while a high current ratio reflects good liquidity, excessively high ratios may indicate underutilized assets. Therefore, it is crucial for CIENA Corp. to strike a balance between liquidity and asset utilization.
Peer comparison
Oct 28, 2023