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Ciena (CIEN) ROA % : -1.20% (As of Apr. 2024)


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What is Ciena ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Ciena's annualized Net Income for the quarter that ended in Apr. 2024 was $-67 Mil. Ciena's average Total Assets over the quarter that ended in Apr. 2024 was $5,604 Mil. Therefore, Ciena's annualized ROA % for the quarter that ended in Apr. 2024 was -1.20%.

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

CIEN' s ROA % Range Over the Past 10 Years
Min: -8.94   Med: 3.93   Max: 36.98
Current: 2.71

During the past 13 years, Ciena's highest ROA % was 36.98%. The lowest was -8.94%. And the median was 3.93%.

CIEN's ROA % is ranked better than
53.74% of 2486 companies
in the Hardware industry
Industry Median: 2.275 vs CIEN: 2.71

Ciena ROA % Historical Data

The historical data trend for Ciena's ROA % 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 ROA % Chart

Ciena Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.63 8.95 11.06 3.08 4.78

Ciena Quarterly Data
Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24
ROA % 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 4.03 2.07 6.44 3.54 -1.20

Competitive Comparison of Ciena's ROA %

For the Communication Equipment subindustry, Ciena's ROA %, along with its competitors' market caps and ROA % 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 ROA % Distribution in the Hardware Industry

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

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



Ciena ROA % Calculation

Ciena's annualized ROA % for the fiscal year that ended in Oct. 2023 is calculated as:

ROA %=Net Income (A: Oct. 2023 )/( (Total Assets (A: Oct. 2022 )+Total Assets (A: Oct. 2023 ))/ count )
=254.827/( (5069.632+5601.495)/ 2 )
=254.827/5335.5635
=4.78 %

Ciena's annualized ROA % for the quarter that ended in Apr. 2024 is calculated as:

ROA %=Net Income (Q: Apr. 2024 )/( (Total Assets (Q: Jan. 2024 )+Total Assets (Q: Apr. 2024 ))/ count )
=-67.396/( (5593.21+5614.803)/ 2 )
=-67.396/5604.0065
=-1.20 %

* 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.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Apr. 2024) net income data. ROA % is displayed in the 30-year financial page.


Ciena  (NYSE:CIEN) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Apr. 2024 )
=Net Income/Total Assets
=-67.396/5604.0065
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-67.396 / 3643.304)*(3643.304 / 5604.0065)
=Net Margin %*Asset Turnover
=-1.85 %*0.6501
=-1.20 %

Note: The Net Income data used here is four times the quarterly (Apr. 2024) net income data. The Revenue data used here is four times the quarterly (Apr. 2024) revenue data.

* 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.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Ciena ROA % Related Terms

Thank you for viewing the detailed overview of Ciena's ROA % 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