Ciena Corp (CIEN)
Solvency ratios
| Nov 2, 2024 | Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.27 | 0.28 | 0.21 | 0.14 | 0.16 |
| Debt-to-capital ratio | 0.35 | 0.35 | 0.28 | 0.18 | 0.21 |
| Debt-to-equity ratio | 0.54 | 0.54 | 0.39 | 0.22 | 0.27 |
| Financial leverage ratio | 2.00 | 1.97 | 1.87 | 1.61 | 1.67 |
The solvency ratios of Ciena Corp show a consistent trend of improvement over the past five years from 2020 to 2024. The debt-to-assets ratio has decreased from 0.16 in 2020 to 0.27 in 2024, indicating that the company has been able to reduce its reliance on debt to finance its assets. Similarly, the debt-to-capital ratio and debt-to-equity ratio have also shown improvement, declining from 0.21 and 0.27 in 2020 to 0.35 and 0.54 in 2024, respectively.
The financial leverage ratio, which indicates the proportion of a company's assets that are financed by debt, has consistently increased from 1.61 in 2020 to 2.00 in 2024. This suggests that the company's reliance on debt to finance its operations has increased over the years.
Overall, the decreasing trend in debt ratios (debt-to-assets, debt-to-capital, debt-to-equity) indicates that Ciena Corp has been progressively managing its debt levels more effectively, potentially reducing financial risks associated with high debt obligations. However, the increasing financial leverage ratio suggests that the company's financial structure has become more leveraged, highlighting the importance of monitoring its debt levels and financial stability in the future.
Coverage ratios
| Nov 2, 2024 | Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | 4.68 | 4.88 | 16.01 | 15.56 |
The interest coverage ratio for Ciena Corp has shown some fluctuation over the past five years. In the most recent year, as of November 2, 2024, the interest coverage ratio was not available. However, in the previous years, the company demonstrated a solid ability to cover its interest expenses with operating income, with ratios of 4.68 in October 2023 and 4.88 in October 2022.
Looking further back, in October 2021 and October 2020, the interest coverage ratios were much higher at 16.01 and 15.56 respectively, indicating a significant improvement in the company's ability to service its debt obligations from its operating profits in those years.
Overall, the trend in Ciena Corp's interest coverage ratio shows some variability but generally reflects a healthy ability to meet its interest payments with operating earnings, providing a level of assurance to creditors and investors regarding the company's financial stability.