Juniper Networks Inc (JNPR)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 4.25 | 6.17 | 12.58 | 15.22 | 32.90 |
| Receivables turnover | 5.25 | 4.31 | 4.65 | 4.47 | 4.94 |
| Payables turnover | 13.71 | 11.00 | 12.53 | 11.55 | 14.12 |
| Working capital turnover | 3.24 | 3.44 | 4.28 | 3.89 | 2.61 |
Analysis of Juniper Networks Inc Activity Ratios:
1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company is managing its inventory. Juniper Networks Inc's inventory turnover has decreased from 7.32 in 2021 to 2.48 in 2023, indicating a decline in the efficiency of selling through its inventory.
2. Receivables Turnover:
- The receivables turnover ratio assesses how well a company is collecting its accounts receivable. Juniper Networks Inc's receivables turnover has been relatively stable, with a slight increase from 4.32 in 2022 to 5.33 in 2023, suggesting effective management of credit sales and collections.
3. Payables Turnover:
- The payables turnover ratio evaluates the efficiency at which a company is paying its suppliers. Juniper Networks Inc's payables turnover has been increasing steadily over the years, reaching 8.01 in 2023, indicating a faster turnover of payables which could potentially improve cash flow management.
4. Working Capital Turnover:
- The working capital turnover ratio shows how efficiently a company is using its working capital to generate revenue. Juniper Networks Inc's working capital turnover has shown a fluctuating trend, with a notable increase from 2.67 in 2019 to 4.38 in 2021 followed by a slight decline to 3.29 in 2023, suggesting varying efficiency in utilizing working capital for revenue generation.
In conclusion, Juniper Networks Inc's activity ratios reveal both strengths and areas for improvement. The company has shown progress in managing accounts receivable and payables turnover, but there is a declining trend in inventory turnover efficiency. Monitoring and managing these ratios effectively can help enhance operational performance and overall financial health.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 85.90 | 59.17 | 29.02 | 23.98 | 11.10 |
| Days of sales outstanding (DSO) | days | 69.49 | 84.71 | 78.49 | 81.59 | 73.96 |
| Number of days of payables | days | 26.62 | 33.19 | 29.13 | 31.61 | 25.85 |
Activity ratios provide insight into how efficiently a company is managing its assets and liabilities. Let's analyze Juniper Networks Inc's activity ratios based on the data provided:
1. Days of Inventory on Hand (DOH):
- The trend of DOH shows an increasing trend from 49.87 days in 2021 to 147.14 days in 2023. This indicates that Juniper Networks is holding inventory for a longer period, which may tie up working capital and be a sign of inefficiency in inventory management.
2. Days of Sales Outstanding (DSO):
- The trend in DSO fluctuates over the years, with the highest being 84.50 days in 2022 and the lowest being 68.49 days in 2023. A decreasing trend in DSO indicates that Juniper Networks is collecting receivables more quickly, which is a positive sign of efficient accounts receivable management.
3. Number of Days of Payables:
- The trend in the number of days of payables also fluctuates over the years. The longest period was in 2022 with 54.12 days and the shortest in 2023 with 45.59 days. A higher number of days of payables implies that the company is taking longer to pay its suppliers, which can be seen as a way to manage cash flow effectively.
Overall, Juniper Networks Inc is showing signs of improvement in managing its accounts receivable, as reflected in the decreasing trend of DSO. However, the increase in DOH suggests inefficiencies in inventory management that may need to be addressed. The fluctuating trend in the number of days of payables indicates a need for consistent management of payables to ensure optimal cash flow management.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 7.95 | 7.93 | 6.58 | 5.66 | 5.22 |
| Total asset turnover | 0.58 | 0.57 | 0.52 | 0.46 | 0.49 |
Based on the long-term activity ratios of Juniper Networks Inc, we observe a positive trend over the past five years. The fixed asset turnover ratio has been steadily increasing from 5.35 in 2019 to 8.07 in 2023. This indicates that the company is generating more revenue from its fixed assets, reflecting efficient asset utilization.
In contrast, the total asset turnover ratio has also shown improvement over the same period, albeit with fluctuations. The ratio increased from 0.50 in 2019 to 0.58 in 2023. Although the ratio is lower than the fixed asset turnover, it demonstrates that Juniper Networks Inc is generating more sales relative to its total assets, highlighting an effective use of assets to generate revenue.
Overall, the increasing trends in both fixed asset turnover and total asset turnover ratios indicate that Juniper Networks Inc is efficiently managing and utilizing its assets to generate higher sales, which is a positive sign for the company's long-term operational performance.