Ciena Corp (CIEN)
Quick ratio
| 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 | US$ in thousands | 1,264,750 | 1,010,620 | 1,117,920 | 1,167,700 | 1,054,550 | 994,352 | 859,687 | 1,019,860 | 1,118,640 | 1,422,550 | 1,230,440 | 1,202,970 | 1,029,240 | 1,088,620 | 1,093,750 | 887,732 | 668,810 | 726,214 | 652,096 | 648,867 |
| Short-term investments | US$ in thousands | 106,678 | 104,753 | 141,843 | 150,464 | 100,424 | 153,989 | 321,823 | 529,552 | 460,368 | 181,483 | 182,010 | 151,816 | 151,434 | 150,667 | 70,404 | 100,742 | 119,143 | 228,940 | 268,584 | 278,743 |
| Receivables | US$ in thousands | 886,149 | 1,037,280 | 1,015,110 | 1,077,950 | 1,079,180 | 944,798 | 817,362 | 789,533 | 807,198 | 903,366 | 896,037 | — | 726,124 | 741,386 | — | — | 781,341 | 728,940 | 647,380 | 553,724 |
| Total current liabilities | US$ in thousands | 841,306 | 932,021 | 965,741 | 1,057,930 | 1,018,210 | 1,040,580 | 915,342 | 868,758 | 760,328 | 909,030 | 827,091 | 782,676 | 684,767 | 760,701 | 720,491 | 712,986 | 700,760 | 1,068,440 | 989,755 | 933,376 |
| 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 |
January 27, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,264,750K
+ $106,678K
+ $886,149K)
÷ $841,306K
= 2.68
CIENA Corp.'s quick ratio has displayed a generally stable trend over the past eight quarters, with values fluctuating between 2.34 and 3.12. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates a stronger ability to cover short-term liabilities, reflecting favorable liquidity and financial health.
The quick ratio peaked at 3.12 in Q1 2024, indicating that the company had $3.12 in liquid assets available to cover $1 of current liabilities. This suggests a robust liquidity position at that point in time. In contrast, the quick ratio was lowest at 2.34 in Q4 2022, indicating a relatively weaker ability to cover short-term obligations with liquid assets.
Overall, CIENA Corp.'s quick ratio has generally remained above 2, suggesting a strong liquidity position and ability to meet short-term financial obligations. However, it is important to analyze the trend alongside other financial ratios and factors to gain a comprehensive understanding of the company's financial performance and stability.
Peer comparison
Jan 27, 2024