Ciena Corp (CIEN)
Debt-to-assets ratio
| Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | Oct 31, 2017 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,543,410 | 1,061,120 | 670,355 | 676,356 | 583,688 |
| Total assets | US$ in thousands | 5,601,500 | 5,069,630 | 4,865,230 | 4,180,920 | 3,951,710 |
| Debt-to-assets ratio | 0.28 | 0.21 | 0.14 | 0.16 | 0.15 |
October 28, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,543,410K ÷ $5,601,500K
= 0.28
The debt-to-assets ratio of CIENA Corp. has exhibited fluctuations over the past five years. The ratio was 0.29 as of October 28, 2023, indicating that the company financed approximately 29% of its assets through debt. This represents an increase from the previous year, where the ratio was 0.22. Compared to two years prior, the ratio has shown a more substantial increase, as it was 0.15 as of October 30, 2021. However, it is important to note that this ratio was still higher than the 0.18 and 0.19 ratios recorded on October 31, 2020, and October 31, 2019, respectively.
The increasing trend in the debt-to-assets ratio suggests that CIENA Corp. has been relying more on debt to finance its assets in recent years. This could be indicative of a strategic decision to leverage the company's operations and investments. However, a higher debt-to-assets ratio also implies a greater financial risk, as increased debt may lead to higher interest payments and potential repayment challenges. It would be essential for stakeholders to closely monitor this trend and assess the company's ability to manage its debt levels effectively.
Peer comparison
Oct 28, 2023