Juniper Networks Inc (JNPR)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	4,041,900	4,072,200	4,020,500	3,931,000	3,820,800	3,690,400	3,536,200	3,479,300	3,429,100	3,455,800	3,389,400	3,283,600	3,198,800	3,092,800	3,072,200	3,093,500	3,098,800	3,032,400	3,048,200	3,067,600
Inventory	US$ in thousands	952,400	976,300	925,700	761,500	619,400	519,600	394,900	317,000	272,600	223,200	211,500	259,200	210,200	175,800	123,700	101,700	94,200	93,400	94,300	93,900
Inventory turnover		4.24	4.17	4.34	5.16	6.17	7.10	8.95	10.98	12.58	15.48	16.03	12.67	15.22	17.59	24.84	30.42	32.90	32.47	32.32	32.67

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,041,900K ÷ $952,400K
= 4.24

Based on the data provided, the inventory turnover for Juniper Networks Inc has been on a declining trend over the past eight quarters. In Q1 2022, the company had an inventory turnover ratio of 6.48, which indicates that their inventory was sold and replaced 6.48 times during that period. However, the ratio has been steadily decreasing since then, reaching a low of 2.48 in Q4 2023.

A decreasing inventory turnover ratio could suggest inefficiencies in managing inventory levels or challenges in selling products at a faster pace. This may lead to issues such as obsolete inventory, storage costs, and potential write-offs. The company may need to reevaluate its inventory management practices to improve operational efficiency and optimize working capital.

It is important for investors and stakeholders to monitor inventory turnover ratios, as they provide insights into a company's ability to manage inventory levels effectively and generate sales from its inventory. The declining trend in Juniper Networks Inc's inventory turnover ratio warrants further investigation and strategic actions to address any underlying issues affecting inventory management and sales performance.