Ciena Corp (CIEN)
Operating return on assets (Operating ROA)
| Nov 2, 2024 | Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 166,617 | 357,545 | 222,808 | 495,356 | 486,964 |
| Total assets | US$ in thousands | 5,641,340 | 5,601,500 | 5,069,630 | 4,865,230 | 4,180,920 |
| Operating ROA | 2.95% | 6.38% | 4.39% | 10.18% | 11.65% |
November 2, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $166,617K ÷ $5,641,340K
= 2.95%
Operating ROA measures how efficiently a company utilizes its assets to generate operating profits. Ciena Corp's operating ROA has shown a declining trend over the past five years, decreasing from 11.65% in 2020 to 2.95% in 2024. This suggests a decreasing ability to generate operating profits relative to its total assets. The lower operating ROA in 2024 indicates that the company may be facing challenges in effectively utilizing its assets to generate operating income. Further analysis is needed to understand the factors contributing to this decline and to develop strategies for improving operating efficiency in the future.
Peer comparison
Nov 2, 2024