Ciena Corp (CIEN)
Debt-to-capital ratio
| Nov 2, 2024 | Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.35 | 0.35 | 0.28 | 0.18 | 0.21 |
November 2, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,533,070K ÷ ($1,533,070K + $2,816,140K)
= 0.35
The debt-to-capital ratio of Ciena Corp has fluctuated over the past five years. In the most recent fiscal year ending November 2, 2024, the ratio stood at 0.35. This indicates that for every dollar of capital employed by the company, 35 cents was sourced from debt. The stability of the ratio at 0.35 in both 2024 and 2023 suggests a consistent level of debt utilization relative to total capital.
Comparing the latest ratio to previous years, we observe an upward trend from 0.18 in 2021 to 0.21 in 2020, followed by a more significant increase to 0.28 in 2022. This indicates a shift towards a higher reliance on debt financing in those years. However, the ratio has since stabilized at 0.35 over the past two years, signifying a potentially deliberate effort to maintain a certain balance between debt and equity in the company's capital structure.
Overall, the debt-to-capital ratio of Ciena Corp indicates a moderate level of leverage, with the company being somewhat reliant on debt to fund its operations and growth initiatives. Monitoring this ratio in conjunction with other financial metrics can provide valuable insights into the company's financial health and risk profile.
Peer comparison
Nov 2, 2024