Ciena Corp (CIEN)
Operating return on assets (Operating ROA)
| Nov 2, 2024 | Jul 27, 2024 | Apr 27, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 166,617 | 198,709 | 250,180 | 356,958 | 357,545 | 343,511 | 292,404 | 248,020 | 222,808 | 282,949 | 404,365 | 479,565 | 495,356 | 451,430 | 490,943 | 484,802 | 456,950 | 448,741 | 292,771 | 182,019 |
| Total assets | US$ in thousands | 5,641,340 | 5,575,130 | 5,614,800 | 5,593,210 | 5,601,500 | 5,723,210 | 5,775,640 | 5,672,500 | 5,069,630 | 4,900,780 | 4,964,130 | 4,900,360 | 4,865,230 | 4,655,870 | 4,388,010 | 4,186,900 | 4,180,920 | 4,055,190 | 3,856,760 | 3,618,110 |
| Operating ROA | 2.95% | 3.56% | 4.46% | 6.38% | 6.38% | 6.00% | 5.06% | 4.37% | 4.39% | 5.77% | 8.15% | 9.79% | 10.18% | 9.70% | 11.19% | 11.58% | 10.93% | 11.07% | 7.59% | 5.03% |
November 2, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $166,617K ÷ $5,641,340K
= 2.95%
Operating return on assets (operating ROA) measures the efficiency of management in generating operating profits from the assets employed in the business. A higher operating ROA indicates better utilization of assets to generate operating income.
Analyzing the trend of Ciena Corp's operating ROA over the provided periods, there are fluctuations observed. The operating ROA ranged between 2.95% to 11.58% during the period under review. The operating ROA shows an upward trend from May 2, 2020, peaking at 11.58% on Jan 30, 2021. However, it declined slightly in the recent period to 2.95% on Nov 2, 2024.
The variations in operating ROA can be attributed to changes in operational efficiency, profitability, asset management, and overall market conditions. It is crucial for the company to maintain a balance between profitability and asset utilization to ensure sustainable growth.
Further analysis would be required to understand the specific factors influencing the fluctuations in Ciena Corp's operating ROA and to assess the company's overall performance and competitiveness in the industry.
Peer comparison
Nov 2, 2024