Ciena Corp (CIEN)
Profitability ratios
Return on sales
| Nov 2, 2024 | Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 42.83% | 42.83% | 42.95% | 47.56% | 46.80% |
| Operating profit margin | 4.15% | 8.15% | 6.13% | 13.68% | 13.79% |
| Pretax margin | 2.99% | 7.38% | 5.02% | 12.78% | 12.91% |
| Net profit margin | 2.09% | 5.81% | 4.21% | 13.81% | 10.23% |
Ciena Corp's profitability ratios have shown some fluctuations over the past five years.
1. Gross profit margin has remained relatively stable around the mid-40% range, indicating the company's ability to efficiently manage its production costs and generate profits from its core operations.
2. Operating profit margin has shown some variability, with a notable decrease in the most recent year to 4.15%. This indicates that the company's operating expenses have increased relative to its revenue, impacting its profitability at the operating level.
3. Pretax margin has also experienced fluctuations, with a significant drop in the most recent year to 2.99%. This indicates that the company's pre-tax profitability has decreased, possibly due to higher expenses or lower revenue.
4. Net profit margin has shown significant variability over the years, with a notable decrease to 2.09% in the latest year. This suggests that after accounting for all expenses including taxes, Ciena Corp's bottom-line profitability has been impacted.
Overall, Ciena Corp's profitability ratios have demonstrated some inconsistency in recent years, highlighting potential challenges in maintaining profitability levels. Investors and stakeholders may want to further investigate the reasons behind these fluctuations and assess the company's overall financial health and sustainability.
Return on investment
| Nov 2, 2024 | Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.95% | 6.38% | 4.39% | 10.18% | 11.65% |
| Return on assets (ROA) | 1.49% | 4.55% | 3.02% | 10.28% | 8.64% |
| Return on total capital | 3.83% | 9.37% | 6.08% | 13.38% | 15.29% |
| Return on equity (ROE) | 2.98% | 8.95% | 5.64% | 16.56% | 14.40% |
Based on the provided data on Ciena Corp's profitability ratios, we observe the following trends:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA has been declining over the past five years, from 11.65% in FY2020 to 2.95% in the most recent fiscal year, indicating a decrease in the company's ability to generate operating profits from its total assets.
2. Return on Assets (ROA):
- The ROA also demonstrates a downward trend from 8.64% in FY2020 to 1.49% in the latest fiscal year. This suggests a decrease in the company's overall profitability in relation to its total assets over the period.
3. Return on Total Capital:
- The Return on Total Capital has shown a similar pattern of decline, dropping from 15.29% in FY2020 to 3.83% in the most recent fiscal year, reflecting a reduction in the company's ability to generate returns from its total invested capital.
4. Return on Equity (ROE):
- The Return on Equity has fluctuated over the years, with a notable decrease from 16.56% in FY2020 to 2.98% in the latest fiscal year. This variability indicates changes in the company's profitability in relation to shareholders' equity.
Overall, the profitability ratios of Ciena Corp exhibit a concerning trend of declining performance in terms of generating returns from its assets, capital, and equity over the past five years. It is essential for the company to identify key areas for improvement in order to enhance its profitability and ensure sustained financial health in the future.