Ciena Corp (CIEN)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.27 | 0.28 | 0.27 | 0.28 | 0.28 | 0.27 | 0.27 | 0.27 | 0.21 | 0.22 | 0.21 | 0.22 | 0.14 | 0.14 | 0.00 | 0.16 | 0.16 | 0.00 | 0.00 | 0.19 |
| Debt-to-capital ratio | 0.35 | 0.35 | 0.35 | 0.35 | 0.35 | 0.34 | 0.35 | 0.35 | 0.28 | 0.28 | 0.28 | 0.27 | 0.18 | 0.19 | 0.00 | 0.21 | 0.21 | 0.00 | 0.00 | 0.25 |
| Debt-to-equity ratio | 0.54 | 0.53 | 0.53 | 0.53 | 0.54 | 0.52 | 0.53 | 0.55 | 0.39 | 0.40 | 0.38 | 0.38 | 0.22 | 0.23 | 0.00 | 0.26 | 0.27 | 0.00 | 0.00 | 0.33 |
| 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 |
Ciena Corp's solvency ratios show a consistent trend over the past few quarters. The debt-to-assets ratio has ranged between 0.21 and 0.28, indicating that the company finances its assets primarily through equity capital. The debt-to-capital ratio has also remained stable between 0.28 and 0.35, suggesting a moderate level of debt in the company's capital structure.
The debt-to-equity ratio has varied between 0.38 and 0.55, showing that Ciena Corp relies more on equity financing compared to debt financing. This indicates a lower financial risk as higher debt levels could lead to increased financial leverage and interest payments.
The financial leverage ratio, which has fluctuated between 1.61 and 2.00, gives an overall picture of the company's financial risk and leverage. A ratio of 2.00 indicates that for every dollar of equity, the company has $2 of assets. This indicates moderate financial leverage but also suggests that there is room for expansion or increased borrowing capacity.
In conclusion, Ciena Corp's solvency ratios demonstrate a stable and prudent approach to managing its capital structure with a focus on equity financing over debt.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio for Ciena Corp has shown variability over the past several quarters. It measures the company's ability to cover its interest expenses with its operating income.
From January 2019 to November 2024, Ciena Corp's interest coverage ratio has ranged from a low of 2.33 to a high of 16.40. The ratio has generally been above 1, indicating that the company's operating income has been sufficient to cover its interest expenses.
In the recent quarters, the interest coverage ratio has ranged between 2.33 and 4.06, which indicates a moderate ability to cover interest payments. However, in earlier quarters, the ratio was substantially higher, peaking at 16.40 in May 2021. This suggests that the company had significantly higher earnings relative to its interest expenses during that period.
Overall, Ciena Corp's interest coverage ratio has shown some fluctuations. It is important for investors and stakeholders to monitor this ratio to ensure the company's ability to meet its interest obligations and assess its financial health.