Juniper Networks Inc (JNPR)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 144.82 | 147.14 | 96.50 | 49.87 | 41.00 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 144.82 | 147.14 | 96.50 | 49.87 | 41.00 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 144.82 + — – —
= 144.82
Juniper Networks Inc's cash conversion cycle has shown a notable increase over the years, reflecting a lengthening of the time it takes for the company to convert its investments in inventory and other resources into cash receipts from sales.
The trend reveals that as of December 31, 2020, the company's cash conversion cycle stood at 41.00 days, indicating efficient management of working capital. However, by December 31, 2024, this figure had escalated to 144.82 days, implying a significant deterioration in the efficiency of the company's cash conversion cycle.
The prolonged cash conversion cycle suggests that Juniper Networks Inc may be facing challenges in efficiently managing its working capital, potentially leading to higher financing costs and reduced liquidity. Management should focus on streamlining operations, optimizing inventory levels, and improving collection processes to enhance cash flow and overall financial performance.
Peer comparison
Dec 31, 2024