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Ciena (CIEN) Operating Margin % : 1.28% (As of Apr. 2024)


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What is Ciena Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Ciena's Operating Income for the three months ended in Apr. 2024 was $12 Mil. Ciena's Revenue for the three months ended in Apr. 2024 was $911 Mil. Therefore, Ciena's Operating Margin % for the quarter that ended in Apr. 2024 was 1.28%.

Warning Sign:

Ciena Corp operating margin has been in a 5-year decline. The average rate of decline per year is -2.3%.

The historical rank and industry rank for Ciena's Operating Margin % or its related term are showing as below:

CIEN' s Operating Margin % Range Over the Past 10 Years
Min: 2.01   Med: 8.35   Max: 14.57
Current: 6.81


CIEN's Operating Margin % is ranked better than
67.07% of 2460 companies
in the Hardware industry
Industry Median: 3.475 vs CIEN: 6.81

Ciena's 5-Year Average Operating Margin % Growth Rate was -2.30% per year.

Ciena's Operating Income for the three months ended in Apr. 2024 was $12 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2024 was $282 Mil.


Ciena Operating Margin % Historical Data

The historical data trend for Ciena's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Ciena Operating Margin % Chart

Ciena Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.49 14.54 14.57 7.08 8.77

Ciena Quarterly Data
Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.87 7.72 8.72 8.63 1.28

Competitive Comparison of Ciena's Operating Margin %

For the Communication Equipment subindustry, Ciena's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ciena's Operating Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Ciena's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Ciena's Operating Margin % falls into.



Ciena Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Ciena's Operating Margin % for the fiscal year that ended in Oct. 2023 is calculated as

Operating Margin %=Operating Income (A: Oct. 2023 ) / Revenue (A: Oct. 2023 )
=384.853 / 4386.549
=8.77 %

Ciena's Operating Margin % for the quarter that ended in Apr. 2024 is calculated as

Operating Margin %=Operating Income (Q: Apr. 2024 ) / Revenue (Q: Apr. 2024 )
=11.69 / 910.826
=1.28 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Ciena  (NYSE:CIEN) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Ciena Operating Margin % Related Terms

Thank you for viewing the detailed overview of Ciena's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Ciena (CIEN) Business Description

Address
7035 Ridge Road, Hanover, MD, USA, 21076
Ciena Corp is a network and technology company. It provides network hardware, software, and services that support the transport, switching, aggregation, service delivery, and management of video, data, and voice traffic on communications networks. It serves various industries such as communication services providers, web-scale providers, cable operators, government, and large enterprises world-wide. The business activities function through Networking Platforms; Platform Software and Services; Blue Planet Automation Software, and Global Services segments. Geographically, its presence is seen in the markets of the United States, Canada, the Caribbean, Latin America, Europe, the Middle East, Africa, the Asia Pacific, Japan, and India. The maximum revenue is generated from Americas.
Executives
David M Rothenstein officer: Sr. VP, General Counsel 7035 RIDGE ROAD, HANOVER MD 21076
Gary B Smith director, officer: President, CEO C/O CIENA CORPORATION, 7035 RIDGE ROAD, HANOVER MD 21076
Brodie Gage officer: SVP Global Products & Supply 2351 ALFRED-NOBEL BLVD, SUITE N-300, SAINT LAURENT A8 H4S 2A9
Dino Diperna officer: SVP Global R&D 385 TERRY FOX DR, OTTAWA A6 K2K OL1
Jason Phipps officer: SVP Global Sales and Marketing 7410 RIDGE RD, HANOVER MD 21076
Joseph Cumello officer: SVP, General Mgr. Blue Planet 7035 RIDGE RD, HANOVER MD 21076
Scott Mcfeely officer: SVP, Networking Platforms 7035 RIDGE RD, HANOVER MD 21076
Mary G Puma director AXCELIS TECHNOLOGIES INC., 108 CHERRY HILL DRIVE, BEVERLY MA 01915
Andrew C Petrik officer: VP, CONTROLLER 7035 RIDGE ROAD, HANOVER MD 21076
Sheela Kosaraju officer: SVP, General Counsel 43-51 WORSHIP ST, LONDON X0 EC2A 2DX
Stephen B Alexander officer: SVP, Chief Technology Officer C/O CIENA CORPORATION, 7035 RIDGE ROAD, HANOVER MD 21076
Rick Hamilton officer: SVP, Software and Services 9500 AMBERGIEN, AUSTIN TX 78729
Moylan James E Jr officer: SVP Finance, CFO CIENA CORPORATION, 7035 RIDGE ROAD, HANOVER MD 21076
Judith M Obrien director 855 MAUDE AVENUE, MOUNTAIN VIEW CA 94043
Thomas Michael Nevens director C/O BORLAND SOFTWARE CORPORATION, 20450 STEVENS CREEK BLVD, SUITE 800, CUPERTINO CA 95014