Juniper Networks Inc (JNPR)

Short-term

Turnover ratios

Based on the provided data for Juniper Networks Inc, let's analyze the activity ratios:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently the company manages its inventory. A high ratio indicates that inventory is moving quickly, which is generally favorable.
- Juniper Networks Inc's inventory turnover has slightly decreased from 8.90 in 2020 to 2.52 in 2024. This declining trend may suggest that the company is holding onto inventory for longer periods, which could tie up capital and indicate potential inefficiencies in inventory management.

2. Receivables Turnover:
- The receivables turnover ratio evaluates how efficiently the company collects payments from its customers. A higher ratio indicates that receivables are being collected quickly.
- Data provided did not include receivables turnover figures. Without this information, it's challenging to assess Juniper Networks Inc's effectiveness in collecting accounts receivable.

3. Payables Turnover:
- The payables turnover ratio reveals how well a company manages its outstanding payments to suppliers. A higher ratio suggests that the company is paying its suppliers more quickly.
- The data shows that payables turnover figures are not available, limiting our ability to evaluate Juniper Networks Inc's payment practices and relationships with suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio indicates how efficiently a company generates revenue from its working capital. A higher ratio implies better utilization of working capital.
- Juniper Networks Inc's working capital turnover has fluctuated slightly over the years, ranging from 3.29 in 2023 to 4.38 in 2021. A generally increasing trend in this ratio signifies that the company is effectively utilizing its working capital to generate revenue.

In summary, while the inventory turnover has shown a decline over the years, indicating potential inefficiencies in inventory management, the working capital turnover has been relatively stable with a positive trend, suggesting efficient utilization of working capital to drive revenue generation. Assessing payables and receivables turnover would provide a more comprehensive view of Juniper Networks Inc's overall activity efficiency.

---

Average number of days

The activity ratios for Juniper Networks Inc indicate the efficiency of the company in managing its operations:

1. Days of Inventory on Hand (DOH):
- The DOH has increased from 41.00 days in December 2020 to 144.82 days by December 2024. This suggests that the company is holding inventory for a longer period before it is sold.
- A significant increase in DOH may indicate potential issues such as overstocking, slow-moving inventory, or inefficient inventory management.

2. Days of Sales Outstanding (DSO):
- The data provided does not include information on DSO, indicating that the number of days it takes for the company to collect revenue from sales is not available for analysis.
- DSO is typically used to assess the effectiveness of the company in collecting receivables and managing its accounts receivable turnover.

3. Number of Days of Payables:
- The information on the number of days of payables is also not provided for analysis. This ratio is essential for understanding how long the company takes to pay its suppliers for goods or services received.
- A longer period of payables may indicate favorable payment terms negotiated with suppliers, but it could also be a sign of financial distress if payments are consistently delayed.

Overall, the lack of data on DSO and payables hinders a comprehensive analysis of Juniper Networks Inc's activity ratios. Monitoring these metrics and understanding the underlying reasons for any significant changes can provide valuable insights into the company's operational efficiency and financial health.

---

Long-term

Long-term activity ratios provide insights into how efficiently a company is utilizing its assets to generate sales. Let's analyze the long-term activity ratios of Juniper Networks Inc based on the provided data.

1. Fixed Asset Turnover:
- In 2020, the fixed asset turnover ratio was 5.83, indicating that Juniper Networks generated $5.83 in sales for every $1 of fixed assets invested in the business.
- The ratio slightly decreased to 5.48 in 2021, suggesting a slight decline in efficiency in generating sales from fixed assets.
- However, there was a notable improvement in 2022, with the fixed asset turnover ratio increasing to 7.95. This indicates that the company became more efficient in utilizing its fixed assets to generate sales.
- Unfortunately, data is unavailable for 2023 and 2024.

2. Total Asset Turnover:
- The total asset turnover ratio measures how effectively a company is using all of its assets to generate revenue.
- In 2020, the total asset turnover ratio was 0.47, implying that Juniper Networks generated $0.47 in sales for every $1 of total assets.
- The ratio improved in the following years, reaching 0.53 in 2021, 0.57 in 2022, and further increasing to 0.58 in 2023.
- However, there was a slight decrease in 2024, with the total asset turnover ratio declining to 0.51. This could indicate a decrease in efficiency in utilizing total assets to generate sales.

Overall, the analysis of Juniper Networks Inc's long-term activity ratios suggests that the company has shown fluctuations in its efficiency in utilizing fixed assets but has generally improved in utilizing total assets to generate sales over the years. It would be beneficial to monitor these ratios in the future to assess the company's ongoing operational efficiency.