Ciena Corp (CIEN)
Liquidity ratios
| 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 | Jul 31, 2018 | Apr 30, 2018 | Jan 31, 2018 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 1.97 | 2.01 | 2.06 |
| Quick ratio | 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 | 1.58 | 1.58 | 1.59 |
| Cash ratio | 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 | 0.89 | 0.93 | 0.99 |
CIENA Corp. has shown consistent strength in its liquidity ratios over the quarters displayed. The current ratio has been gradually increasing, reaching 4.29 in Q1 2024, indicating that the company has $4.29 in current assets for every $1 of current liabilities. This suggests a healthy ability to cover its short-term obligations.
The quick ratio, measuring the company's ability to meet short-term obligations with its most liquid assets, also shows a positive trend, with a significant increase to 3.12 in Q1 2024. This indicates that CIENA Corp. can cover its immediate liabilities comfortably without relying on inventory.
The cash ratio, which is the most stringent measure of liquidity, has also displayed improvement, reaching 1.89 in Q1 2024. This means that the company has $1.89 in cash and cash equivalents to cover every $1 of current liabilities, reflecting strong liquidity reserves.
Overall, the liquidity ratios of CIENA Corp. demonstrate a solid financial position and efficient management of its current assets to meet short-term obligations.
Additional liquidity measure
| 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 | Jul 31, 2018 | Apr 30, 2018 | Jan 31, 2018 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 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 | 72.29 | 75.53 | 81.57 |
The cash conversion cycle of CIENA Corp. has shown some fluctuation over the past few quarters.
In Q1 2024, the company's cash conversion cycle was 185.23 days, which improved from the previous quarter's figure of 205.51 days in Q4 2023. However, the cycle was longer compared to Q3 2023 when it stood at 221.39 days.
Looking back further, the cash conversion cycle in Q2 2023 was 217.21 days, which decreased from the exceptionally high level of 231.98 days in Q1 2023.
The company's cash conversion cycle has displayed variability, indicating changes in the efficiency of its working capital management. Shorter cash conversion cycles suggest that the company is able to convert its investments in inventory and receivables into cash more quickly, which is generally favorable. However, it is important for the company to focus on maintaining a healthy balance between speeding up cash flows and managing liquidity effectively.