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Ciena (CIEN) Sloan Ratio % : -2.32% (As of Apr. 2024)


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What is Ciena Sloan Ratio %?

Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.

Ciena's Sloan Ratio for the quarter that ended in Apr. 2024 was -2.32%.

As of Apr. 2024, Ciena has a Sloan Ratio of -2.32%, indicating the company is in the safe zone and there is no funny business with accruals.


Ciena Sloan Ratio % Historical Data

The historical data trend for Ciena's Sloan Ratio % 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 Sloan Ratio % Chart

Ciena Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -4.72 2.10 1.01 8.32 8.39

Ciena Quarterly Data
Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24
Sloan Ratio % 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 6.11 6.34 8.39 -5.06 -2.32

Competitive Comparison of Ciena's Sloan Ratio %

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

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

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



Ciena Sloan Ratio % Calculation

Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.

Ciena's Sloan Ratio for the fiscal year that ended in Oct. 2023 is calculated as

Sloan Ratio=(Net Income (A: Oct. 2023 )-Cash Flow from Operations (A: Oct. 2023 )
-Cash Flow from Investing (A: Oct. 2023 ))/Total Assets (A: Oct. 2023 )
=(254.827-168.332
--383.454)/5601.495
=8.39%

Ciena's Sloan Ratio for the quarter that ended in Apr. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Apr. 2024 )
=(153.63-528.709
--244.886)/5614.803
=-2.32%

Ciena's Net Income for the trailing twelve months (TTM) ended in Apr. 2024 was 29.733 (Jul. 2023 ) + 91.199 (Oct. 2023 ) + 49.547 (Jan. 2024 ) + -16.849 (Apr. 2024 ) = $154 Mil.
Ciena's Cash Flow from Operations for the trailing twelve months (TTM) ended in Apr. 2024 was 8.688 (Jul. 2023 ) + 195.472 (Oct. 2023 ) + 266.076 (Jan. 2024 ) + 58.473 (Apr. 2024 ) = $529 Mil.
Ciena's Cash Flow from Investing for the trailing twelve months (TTM) ended in Apr. 2024 was -8.066 (Jul. 2023 ) + -98.118 (Oct. 2023 ) + 18.133 (Jan. 2024 ) + -156.835 (Apr. 2024 ) = $-245 Mil.

* 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) Sloan Ratio % Explanation

A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.

According to How to Beat the Market with the Sloan Ratio:

If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.

If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.

If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.

As of Apr. 2024, Ciena has a Sloan Ratio of -2.32%, indicating the company is in the safe zone and there is no funny business with accruals.


Ciena Sloan Ratio % Related Terms

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Ciena 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