Juniper Networks Inc (JNPR)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	4,046,700	3,820,800	3,429,100	3,198,800	3,098,800
Inventory	US$ in thousands	952,400	619,400	272,600	210,200	94,200
Inventory turnover		4.25	6.17	12.58	15.22	32.90

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $4,046,700K ÷ $952,400K
= 4.25

Inventory turnover measures how many times a company's inventory is sold and replaced over a specific period. In the case of Juniper Networks Inc, the inventory turnover ratio has declined over the past three years. In 2021, the inventory turnover ratio was relatively high at 7.32, indicating that the company was efficient in managing its inventory by selling and replacing it multiple times during the year. However, this ratio decreased significantly to 3.78 in 2022 and further dropped to 2.48 in 2023.

A declining inventory turnover ratio may suggest that the company is either overstocked with inventory or facing difficulties in selling its products efficiently. It could also indicate potential issues with demand forecasting, production inefficiencies, or changes in customer preferences.

Juniper Networks Inc should closely monitor its inventory turnover ratio and take appropriate measures to improve inventory management practices to ensure optimal efficiency and profitability in the future.