Juniper Networks Inc (JNPR)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 1.80 | 1.74 | 1.58 | 1.51 | 2.08 |
| Quick ratio | 1.07 | 1.11 | 1.19 | 1.27 | 1.84 |
| Cash ratio | 0.57 | 0.52 | 0.66 | 0.82 | 1.27 |
Juniper Networks Inc's liquidity ratios show a consistent trend over the past five years. The current ratio has improved from 1.51 in 2020 to 1.80 in 2023, indicating a stronger ability to meet short-term obligations with current assets. Similarly, the quick ratio, which excludes inventory from current assets, has remained relatively stable between 1.35 and 1.51 over the same period.
The cash ratio, which provides a more stringent measure of liquidity by only considering cash and cash equivalents to cover current liabilities, has fluctuated from 0.86 in 2023 to 1.51 in 2019. This indicates that Juniper Networks Inc may have reduced its reliance on cash to meet short-term obligations in recent years.
Overall, Juniper Networks Inc's liquidity ratios suggest that the company has maintained a solid liquidity position, with a sufficient level of current assets to cover current liabilities. However, the decreasing trend in the cash ratio may warrant further analysis to understand the company's cash management strategies and their impact on liquidity.
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 128.77 | 110.69 | 78.38 | 73.97 | 59.20 |
Juniper Networks Inc's cash conversion cycle, a metric that measures how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales, has shown fluctuating trends over the past five years. In 2023, the company's cash conversion cycle increased significantly to 170.03 days compared to 126.88 days in 2022. This indicates that Juniper Networks is taking longer to convert its resources into cash from sales, potentially pointing to inefficiencies in managing working capital.
Looking back over the previous years, Juniper Networks has experienced variations in its cash conversion cycle. In 2021, the cycle was 76.45 days, showing a significant improvement from the 25.14 days in 2020. However, the cycle increased slightly compared to 2019 when it stood at 28.42 days.
Overall, the increasing trend in Juniper Networks' cash conversion cycle from 2019 to 2023 suggests potential challenges in managing its working capital efficiently. It is essential for the company to closely monitor its inventory management, accounts receivable, and accounts payable to improve its cash conversion cycle and maintain healthy liquidity levels.