Juniper Networks Inc (JNPR)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	5,484,500	5,288,400	4,624,000	4,313,100	4,341,400
Property, plant and equipment	US$ in thousands	689,900	666,800	703,000	762,300	830,900
Fixed asset turnover		7.95	7.93	6.58	5.66	5.22

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,484,500K ÷ $689,900K
= 7.95

The fixed asset turnover ratio measures how efficiently a company generates sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates better utilization of fixed assets to generate sales.

Juniper Networks Inc's fixed asset turnover has been gradually increasing over the past five years, reaching 8.07 in 2023 from 5.35 in 2019. This indicates that the company has been more effective in utilizing its fixed assets to generate sales revenue.

The trend suggests that Juniper Networks has been able to improve its operational efficiency and effectiveness in utilizing its fixed assets over the years. This could be a result of better asset management, improved production processes, or increased sales performance.

Overall, the increasing trend in fixed asset turnover reflects positively on Juniper Networks Inc's ability to efficiently generate sales revenue from its fixed asset base, which is a key indicator of operational effectiveness and efficiency.