Ciena Corp (CIEN)
Operating return on assets (Operating ROA)
| Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | Oct 31, 2017 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 357,545 | 222,808 | 495,356 | 486,964 | 214,722 |
| Total assets | US$ in thousands | 5,601,500 | 5,069,630 | 4,865,230 | 4,180,920 | 3,951,710 |
| Operating ROA | 6.38% | 4.39% | 10.18% | 11.65% | 5.43% |
October 28, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $357,545K ÷ $5,601,500K
= 6.38%
To analyze CIENA Corp.'s operating return on assets (Operating ROA) over the past five years, we observe a fluctuating trend. In the fiscal year ending October 28, 2023, the Operating ROA stood at 6.87%, marking an increase compared to the 5.07% reported in the previous year. This improvement suggests that the company generated a higher operating profit relative to its total assets.
However, the Operating ROA was notably lower than the 10.84% and 12.29% reported in the fiscal years ending October 30, 2021, and October 31, 2020, respectively. This downward trend indicates potential challenges in efficiently utilizing its assets to generate operating income during the most recent fiscal year.
It is important to note that the 9.62% Operating ROA reported in the fiscal year ending October 31, 2019, was closer to the 2023 figure, suggesting that the company's current performance mirrors that of four years ago.
The fluctuating trend in CIENA Corp.'s Operating ROA warrants further investigation into the company's operating efficiency and asset management strategies to evaluate the factors contributing to these variations over the past five years.
Peer comparison
Oct 28, 2023