Ciena Corp (CIEN)
Liquidity ratios
| Nov 2, 2024 | Jul 27, 2024 | Apr 27, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Jan 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.54 | 4.06 | 3.88 | 4.29 | 3.84 | 3.95 | 3.66 | 3.70 | 3.25 | 3.48 | 3.72 | 4.16 | 3.51 | 3.61 | 3.57 | 3.79 | 3.43 | 3.56 | 3.28 | 2.98 |
| Quick ratio | 2.21 | 2.35 | 2.34 | 2.68 | 2.31 | 2.36 | 2.26 | 2.19 | 2.01 | 2.18 | 2.69 | 3.14 | 2.76 | 2.79 | 1.73 | 2.78 | 2.60 | 1.62 | 1.39 | 2.24 |
| Cash ratio | 1.25 | 1.26 | 1.38 | 1.63 | 1.20 | 1.30 | 1.25 | 1.13 | 1.10 | 1.29 | 1.78 | 2.08 | 1.76 | 1.71 | 1.73 | 1.72 | 1.63 | 1.62 | 1.39 | 1.12 |
Ciena Corp's liquidity ratios have shown overall stability and strength over the past few quarters. The current ratio has consistently been above 3, indicating that the company has a strong ability to cover its short-term liabilities with its current assets.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also remained consistently above 2. This indicates that Ciena Corp can easily cover its short-term obligations without relying on selling inventory.
The cash ratio, which is the most conservative liquidity ratio, has also been stable and above 1 in most periods. This suggests that the company holds enough cash to cover its current liabilities, providing a good cushion in case of any unexpected challenges.
Overall, Ciena Corp's liquidity ratios indicate a healthy financial position with a strong ability to meet its short-term obligations and sustain its operations.
Additional liquidity measure
| Nov 2, 2024 | Jul 27, 2024 | Apr 27, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 149.91 | 185.18 | 184.42 | 172.57 | 193.00 | 209.11 | 200.90 | 217.86 | 170.79 | 147.93 | 107.55 | 106.93 | 94.55 | 110.21 | 25.34 | 105.32 | 88.04 | 12.66 | 6.66 | 93.29 |
The cash conversion cycle of Ciena Corp fluctuated over the periods analyzed, ranging from 6.66 days to 217.86 days. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and accounts receivable into cash inflows from sales. A shorter cash conversion cycle indicates that a company is able to efficiently manage its working capital and generate cash quickly from its operations.
Analyzing the trend, we observe that the cash conversion cycle peaked at 217.86 days in January 2023 and showed a decreasing trend until April 2021, where it reached its lowest point at 6.66 days. This indicates that Ciena Corp was able to improve the efficiency of its working capital management and cash flow generation during this period. However, the cash conversion cycle increased thereafter, reflecting potential challenges in managing inventory and accounts receivable effectively.
Overall, Ciena Corp should focus on optimizing its inventory turnover and accounts receivable collection processes to reduce the cash conversion cycle and enhance its cash flow efficiency. This would enable the company to free up working capital and improve its overall financial performance.