Ciena Corp (CIEN)
Return on total capital
| Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | Oct 31, 2017 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 411,679 | 229,555 | 493,588 | 487,282 | 211,978 |
| Long-term debt | US$ in thousands | 1,543,410 | 1,061,120 | 670,355 | 676,356 | 583,688 |
| Total stockholders’ equity | US$ in thousands | 2,848,360 | 2,712,860 | 3,020,020 | 2,509,600 | 2,136,340 |
| Return on total capital | 9.37% | 6.08% | 13.38% | 15.29% | 7.79% |
October 28, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $411,679K ÷ ($1,543,410K + $2,848,360K)
= 9.37%
CIENA Corp.'s return on total capital has fluctuated over the past five years, with the latest figure standing at 8.64% as of October 28, 2023. This represents an increase from the previous year's 6.70%, but a decrease from the 14.02% reported in 2021 and 15.77% in 2020. Despite this fluctuation, CIENA Corp.'s return on total capital has generally shown a positive trend, with the 2019 figure at 12.80% marking a consistent upward trajectory. This indicates that the company has been effectively utilizing its total capital to generate returns, albeit with some variation in performance over the years.
Peer comparison
Oct 28, 2023