Ciena Corp (CIEN)
Financial leverage ratio
Nov 2, 2024 | Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | ||
---|---|---|---|---|---|---|
Total assets | US$ in thousands | 5,641,340 | 5,601,500 | 5,069,630 | 4,865,230 | 4,180,920 |
Total stockholders’ equity | US$ in thousands | 2,816,140 | 2,848,360 | 2,712,860 | 3,020,020 | 2,509,600 |
Financial leverage ratio | 2.00 | 1.97 | 1.87 | 1.61 | 1.67 |
November 2, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,641,340K ÷ $2,816,140K
= 2.00
The financial leverage ratio of Ciena Corp has demonstrated an increasing trend over the past five years, reaching 2.00 as of November 2, 2024. This indicates that the company has been relying more on debt financing relative to equity in its capital structure. The ratio has gradually increased from 1.67 in 2020 to 2.00 in 2024, showing a consistent upward trajectory in leveraging. A higher financial leverage ratio suggests a higher level of financial risk as the company has more debt obligations to meet, which may impact its financial stability and ability to weather economic downturns. Investors and creditors may closely monitor this trend to assess the company's ability to manage its debt levels effectively.
Peer comparison
Nov 2, 2024