Ciena Corp (CIEN)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 2,848,360 | 2,712,860 | 3,020,020 | 2,509,600 | 2,136,340 |
| Debt-to-equity ratio | 0.54 | 0.39 | 0.22 | 0.27 | 0.27 |
October 28, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,543,410K ÷ $2,848,360K
= 0.54
The debt-to-equity ratio of CIENA Corp. has shown some fluctuation over the past five years, indicating changes in the company's capital structure and financial leverage. In 2023, the ratio stood at 0.56, which signifies an increase compared to the previous year's ratio of 0.41. This suggests that the company's reliance on debt to finance its operations has grown relative to its equity. However, it is important to note that a higher debt-to-equity ratio may not necessarily be detrimental, as it could imply that the company is utilizing debt to fund expansion or growth opportunities.
In 2021, the ratio was 0.25, indicating a significant decrease from the previous year. This suggests that the company had a lower level of financial leverage and a higher proportion of equity in its capital structure. Subsequently, in 2022, the ratio increased to 0.41, signifying a rise in the proportion of debt relative to equity. This change could indicate a shift in the company's financing strategy or capital needs.
The consistent fluctuations in the debt-to-equity ratio over the years may prompt stakeholders to closely monitor CIENA Corp.'s financial decisions and the impact on its overall risk profile. It is essential for investors and creditors to understand the factors driving these changes in order to assess the company's financial stability and risk exposure.
Peer comparison
Oct 28, 2023