Juniper Networks Inc (JNPR)

Based on the provided data, Juniper Networks Inc's liquidity ratios show some fluctuations over the years:

1. Current Ratio: Juniper Networks Inc's current ratio has generally been above 1, indicating that the company has had more current assets than current liabilities to meet its short-term obligations. The ratio has improved from 1.51 in 2020 to 1.80 in 2023 before dropping to 1.46 in 2024.

2. Quick Ratio: The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. Juniper Networks Inc's quick ratio has shown a declining trend from 0.82 in 2020 to 0.52 in both 2022 and 2024, reflecting a decrease in the proportion of highly liquid assets relative to current liabilities.

3. Cash Ratio: The cash ratio indicates the proportion of a company's current liabilities that can be covered by its cash and cash equivalents alone. Juniper Networks Inc's cash ratio has also declined from 0.82 in 2020 to 0.52 in 2022 and 2024, suggesting a decrease in the company's ability to fulfill its short-term obligations solely with cash.

Overall, while Juniper Networks Inc has maintained a current ratio above 1, indicating a relatively healthy liquidity position, the declining trend in quick and cash ratios highlights a potential liquidity challenge, especially in terms of the company's ability to meet immediate short-term obligations using its most liquid assets. Management should closely monitor and manage the composition of its current assets to ensure adequate liquidity levels in the future.

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Additional liquidity measure

The cash conversion cycle of Juniper Networks Inc has seen a steady increase over the years. As of December 31, 2020, the company had a cash conversion cycle of 41.00 days, indicating that it took approximately 41 days to convert its investments in inventory and other resources into cash.

By December 31, 2024, the cash conversion cycle had significantly increased to 144.82 days, reflecting a prolonged period for the company to convert its resources into cash. This may indicate inefficiencies in managing its working capital and potentially longer cash conversion cycles in the future.

Overall, the trend suggests that Juniper Networks Inc has been facing challenges in optimizing its cash conversion cycle efficiently. Further analysis would be warranted to identify the underlying reasons for this trend and develop strategies to improve working capital management.