Ciena Corp (CIEN)
Financial leverage ratio
| Nov 2, 2024 | Jul 27, 2024 | Apr 27, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,641,340 | 5,575,130 | 5,614,800 | 5,593,210 | 5,601,500 | 5,723,210 | 5,775,640 | 5,672,500 | 5,069,630 | 4,900,780 | 4,964,130 | 4,900,360 | 4,865,230 | 4,655,870 | 4,388,010 | 4,186,900 | 4,180,920 | 4,055,190 | 3,856,760 | 3,618,110 |
| Total stockholders’ equity | US$ in thousands | 2,816,140 | 2,890,870 | 2,880,260 | 2,923,500 | 2,848,360 | 2,947,010 | 2,908,650 | 2,838,300 | 2,712,860 | 2,667,740 | 2,782,420 | 2,814,790 | 3,020,020 | 2,924,240 | 2,693,260 | 2,586,510 | 2,509,600 | 2,428,870 | 2,240,580 | 2,054,300 |
| Financial leverage ratio | 2.00 | 1.93 | 1.95 | 1.91 | 1.97 | 1.94 | 1.99 | 2.00 | 1.87 | 1.84 | 1.78 | 1.74 | 1.61 | 1.59 | 1.63 | 1.62 | 1.67 | 1.67 | 1.72 | 1.76 |
November 2, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,641,340K ÷ $2,816,140K
= 2.00
The financial leverage ratios of Ciena Corp have shown some fluctuation over the past few periods, ranging from 1.61 to 2.00. A financial leverage ratio of 2.00 indicates that the company's total assets are twice the amount of its equity. This implies that Ciena Corp relies more on debt financing than equity to fund its operations and growth.
The trend in the financial leverage ratio suggests that the company's debt levels have been relatively stable over time, with some slight fluctuations. A decreasing trend in the ratio could indicate a reduction in debt levels, which may be seen as positive by investors and creditors as it signifies a lower risk of financial distress.
On the other hand, a consistently high financial leverage ratio may raise concerns about the company's ability to meet its debt obligations, particularly in times of economic downturn or unfavorable market conditions. It is essential for Ciena Corp to maintain a balance between debt and equity financing to ensure long-term financial sustainability and stability.
Overall, monitoring the financial leverage ratio of Ciena Corp is crucial for investors and stakeholders to assess the company's capital structure, risk profile, and financial health.
Peer comparison
Nov 2, 2024