Ciena Corp (CIEN)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 189,064 | 224,579 | 286,237 | 389,769 | 411,679 | 396,109 | 335,181 | 283,054 | 229,555 | 287,641 | 409,486 | 482,604 | 493,588 | 449,581 | 488,531 | 480,999 | 458,521 | 449,018 | 294,112 | 187,600 |
| Interest expense (ttm) | US$ in thousands | 72,038 | 96,245 | 95,904 | 95,932 | 88,026 | 77,594 | 66,176 | 54,272 | 47,050 | 41,191 | 36,325 | 32,125 | 30,837 | 30,316 | 29,791 | 29,866 | 31,947 | 38,163 | 43,943 | 49,817 |
| Interest coverage | 2.62 | 2.33 | 2.98 | 4.06 | 4.68 | 5.10 | 5.06 | 5.22 | 4.88 | 6.98 | 11.27 | 15.02 | 16.01 | 14.83 | 16.40 | 16.11 | 14.35 | 11.77 | 6.69 | 3.77 |
November 2, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $189,064K ÷ $72,038K
= 2.62
The interest coverage ratio measures a company's ability to pay its interest expenses on its outstanding debt. A higher ratio indicates that the company is more capable of meeting its interest obligations.
Analyzing the interest coverage trend of Ciena Corp over the past few years, we can observe fluctuations in the ratio. The most recent value of 2.62 as of Nov 2, 2024, reflects the company's ability to cover its interest expenses by its earnings before interest and taxes (EBIT) 2.62 times.
The trend indicates that Ciena Corp experienced a decline in interest coverage from the previous quarter but still maintained a reasonable level of coverage. The ratio has shown variability over the periods, with some quarters displaying significantly higher coverage ratios than others.
The highest interest coverage ratio of 16.40 was observed on May 1, 2021, suggesting strong earnings relative to interest expenses during that period. On the other hand, the lowest ratio of 2.33 was noted on Jul 27, 2024, indicating a relatively weaker ability to cover interest payments compared to other periods.
Overall, the interest coverage ratio for Ciena Corp has shown fluctuations, but the company has generally maintained a moderate to strong ability to meet its interest obligations over the analyzed periods. It would be important to monitor future ratios to assess any potential impacts on the company's financial health and debt repayment capacity.
Peer comparison
Nov 2, 2024