Juniper Networks Inc (JNPR)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cost of revenue (ttm)	US$ in thousands	2,092,100	2,084,300	2,114,100	2,230,000	2,362,600	2,426,800	2,466,200	2,424,700	2,342,900	2,270,600	2,140,400	2,055,300	1,995,300	1,951,400	1,935,200	1,911,500	1,871,400	1,854,600	1,828,900	1,827,900
Inventory	US$ in thousands	830,100	872,500	926,100	958,200	952,400	976,300	925,700	761,500	619,400	519,600	394,900	317,000	272,600	223,200	211,500	247,100	210,200	166,400	118,000	97,300
Inventory turnover		2.52	2.39	2.28	2.33	2.48	2.49	2.66	3.18	3.78	4.37	5.42	6.48	7.32	8.74	9.15	7.74	8.90	11.15	15.50	18.79

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,092,100K ÷ $830,100K
= 2.52

The inventory turnover ratio of Juniper Networks Inc has been gradually decreasing over the years, indicating a declining efficiency in managing its inventory. The ratio has declined from 18.79 on March 31, 2020, to 2.52 on December 31, 2024. A high inventory turnover ratio is generally preferred as it signifies that the company is selling its inventory quickly and efficiently.

The decreasing trend in inventory turnover could suggest issues such as overstocking, slow-moving inventory, or inadequate demand forecasting. A low inventory turnover ratio can tie up capital in unsold inventory and lead to increased storage costs and potential obsolescence risks.

It is advisable for Juniper Networks Inc to closely monitor its inventory levels, streamline its supply chain processes, and improve demand forecasting to enhance its inventory turnover ratio and overall operational efficiency.