Ciena Corp (CIEN)
Return on total capital
| Nov 2, 2024 | Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 166,617 | 411,679 | 229,555 | 493,588 | 487,282 |
| Long-term debt | US$ in thousands | 1,533,070 | 1,543,410 | 1,061,120 | 670,355 | 676,356 |
| Total stockholders’ equity | US$ in thousands | 2,816,140 | 2,848,360 | 2,712,860 | 3,020,020 | 2,509,600 |
| Return on total capital | 3.83% | 9.37% | 6.08% | 13.38% | 15.29% |
November 2, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $166,617K ÷ ($1,533,070K + $2,816,140K)
= 3.83%
Ciena Corp's return on total capital has exhibited variability over the past five years. In the most recent fiscal year as of November 2, 2024, the return on total capital was 3.83%, representing a decline from the previous year's figure of 9.37%. This decrease suggests a reduction in the company's ability to generate profit relative to the total capital invested in the business.
Compared to the data from two years ago, the return on total capital for October 29, 2022, was 6.08%, indicating a moderate performance during that period. However, the company performed significantly better in the fiscal years ending October 30, 2021, and October 31, 2020, with return on total capital figures of 13.38% and 15.29%, respectively. These higher percentages demonstrate a stronger ability to generate profit in relation to total capital during those years.
The fluctuation in Ciena Corp's return on total capital over the five-year period may indicate changes in the company's operational efficiency, profitability, or capital structure. It would be valuable for stakeholders to further investigate the underlying factors driving these fluctuations to assess the company's financial health and performance sustainability.
Peer comparison
Nov 2, 2024