Ciena Corp (CIEN)
Net profit margin
| Nov 2, 2024 | Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 83,956 | 254,827 | 152,902 | 500,196 | 361,291 |
| Revenue | US$ in thousands | 4,014,960 | 4,386,550 | 3,632,660 | 3,620,680 | 3,532,160 |
| Net profit margin | 2.09% | 5.81% | 4.21% | 13.81% | 10.23% |
November 2, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $83,956K ÷ $4,014,960K
= 2.09%
The net profit margin for Ciena Corp has exhibited fluctuations over the past five years. The company's net profit margin decreased from 10.23% in 2020 to 2.09% in 2024, indicating a significant decline in profitability during this period. This downward trend suggests that the company's ability to generate profit relative to its revenue has weakened over the years.
Although the net profit margin improved to 13.81% in 2021, it fell again in the subsequent years. The lower net profit margins in 2023 and 2024 may raise concerns about the company's cost management, pricing strategy, or operational efficiency.
Overall, the declining trend in Ciena Corp's net profit margin highlights the importance of monitoring and addressing factors that may be impacting the company's profitability. Further analysis of the company's financial performance and underlying factors driving these changes would be necessary to determine potential strategies for improving the net profit margin in the future.
Peer comparison
Nov 2, 2024