Ciena Corp (CIEN)
Quick ratio
| Nov 2, 2024 | Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 954,532 | 1,037,280 | 944,798 | 903,366 | 741,386 |
| Total current liabilities | US$ in thousands | 999,840 | 932,021 | 1,040,580 | 909,030 | 760,701 |
| Quick ratio | 2.21 | 2.31 | 2.01 | 2.76 | 2.60 |
November 2, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($934,863K
+ $316,343K
+ $954,532K)
÷ $999,840K
= 2.21
The quick ratio of Ciena Corp has shown some fluctuations over the past five years. The quick ratio indicates the company's ability to meet its short-term obligations using its most liquid assets.
In 2024, the quick ratio stands at 2.21, showing a slightly lower liquidity position compared to the previous year. Despite this slight decline, the company still maintains a strong ability to cover its short-term liabilities with its quick assets.
Looking back at 2023, Ciena Corp had a quick ratio of 2.31, indicating a higher level of liquidity than in 2024. The company seems to have had more liquid assets relative to its current liabilities in that year.
In 2022, the quick ratio was 2.01, which was lower compared to the previous two years. This suggests that the company may have had a slightly lesser ability to cover its short-term obligations with its quick assets in that period.
Moving on to 2021, the quick ratio significantly improved to 2.76, indicating a stronger liquidity position compared to the preceding year. This suggests that Ciena Corp had a higher proportion of liquid assets available to meet its short-term liabilities.
In 2020, the quick ratio was 2.60, showing a good liquidity position for the company. This ratio indicates that the company had the ability to cover more than double its current liabilities with its quick assets during that year.
Overall, Ciena Corp has displayed a generally strong liquidity position over the past five years, with the quick ratio consistently above 2.0. This signifies the company's ability to meet its short-term financial obligations efficiently using its liquid assets.
Peer comparison
Nov 2, 2024