Ciena Corp (CIEN)
Debt-to-equity 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-equity ratio | 0.54 | 0.54 | 0.39 | 0.22 | 0.27 |
November 2, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,533,070K ÷ $2,816,140K
= 0.54
The debt-to-equity ratio for Ciena Corp has shown fluctuations over the past five years. In November 2024 and October 2023, the ratio remained stable at 0.54, indicating that the company's debt level was approximately 54% of its equity during these periods.
However, there was a notable increase in the ratio in October 2022 to 0.39, which suggests that the company relied more on debt financing relative to its equity that year. This could imply increased financial leverage and potentially higher financial risk.
The most substantial shift occurred in October 2021, when the ratio dropped significantly to 0.22, indicating a lower dependence on debt and a stronger equity position. This could signal improved financial stability and a reduced risk of default.
Although the ratio increased slightly in October 2020 to 0.27, it remained relatively lower compared to previous years, reflecting a balanced mix of debt and equity financing.
Overall, the trend in Ciena Corp's debt-to-equity ratio indicates varying levels of leverage over the years, with potential implications for the company's financial risk management and capital structure decisions.
Peer comparison
Nov 2, 2024