Ciena Corp (CIEN)

Based on the solvency ratios of CIENA Corp. for the fiscal years ending October 28, 2023, October 29, 2022, October 30, 2021, October 31, 2020, and October 31, 2019, it is evident that the company's solvency position has been relatively stable over the years.

The debt-to-assets ratio, which measures the extent to which the company's assets are financed by debt, has shown an increasing trend, reaching 0.29 in 2023 from 0.19 in 2019. This indicates that a larger proportion of the company's assets is being financed by debt.

Similarly, the debt-to-capital and debt-to-equity ratios have also displayed an upward trend over the years, signaling an increase in the company's reliance on debt financing in relation to its capital and equity. The Debt-to-capital ratio increased from 0.26 in 2019 to 0.36 in 2023, while the Debt-to-equity ratio rose from 0.35 in 2019 to 0.56 in 2023.

Furthermore, the financial leverage ratio, which reflects the extent of financial leverage used by the company, has also shown a consistent upward trend, reaching 1.97 in 2023 from 1.79 in 2019. This indicates that the company's reliance on debt to finance its assets has been increasing.

Overall, the increasing trend in these solvency ratios suggests that CIENA Corp. has been relying more heavily on debt financing to support its operations and investment activities. It is essential for stakeholders to closely monitor the company's ability to manage its debt levels and ensure sustainable financial stability in the long term.

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Coverage ratios

The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. CIENA Corp.'s interest coverage has shown fluctuation over the past five years, ranging from 6.95 to 21.00.

In 2023, the interest coverage ratio improved to 8.95, indicating the company's ability to cover its interest expenses nearly nine times over with its operating income. This suggests a strong ability to make interest payments.

However, compared to previous years, the 2023 ratio is lower than the 2021 and 2020 figures, which were 18.32 and 21.00, respectively. This may indicate a potential decrease in the company's ability to cover interest expenses, warranting further investigation into its financial health and the sustainability of its earnings to cover debt obligations.

In summary, while the 2023 interest coverage ratio for CIENA Corp. is still healthy, the decline from previous high levels warrants attention and ongoing monitoring.