Ciena Corporation — Earnings Quality Grade C
CIEN · Technology
Some red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 75 days, change -8 days YoY
AR growth 7.4% vs revenue growth 18.8%
Revenue 18.8%, CFFO 56.7%. Cash follows revenue
Expense Quality
Inventory 0.7% vs COGS 20.4%. Normal
CapEx growth 3.0% vs revenue 18.8%. Normal
SG&A/Gross Profit = 40.9%. Normal
Gross margin 42.0%, change -0.8pp. Stable
Cash Flow Quality
CFFO/NI = 6.54. Profits backed by cash
FCF $0.7B, FCF/NI = 5.39
Accruals ratio = -11.6%. Low accruals
Cash $1.3B covers 80% of debt $1.6B
Balance Sheet Health
Goodwill+Intangibles $0.7B = 27% of equity. Manageable
Debt/EBITDA = 4.2x (>4x). Financial stress
Other assets 11.4% vs revenue 18.8%. Normal
Write-offs surged 356% YoY, = 91% of NI. Possible big bath
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 22% YoY. Normal
Manipulation Score
M-Score = -2.92 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10