Juniper Networks Inc (JNPR)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	85.90	59.17	29.02	23.98	11.10
Days of sales outstanding (DSO)	days	69.49	84.71	78.49	81.59	73.96
Number of days of payables	days	26.62	33.19	29.13	31.61	25.85
Cash conversion cycle	days	128.77	110.69	78.38	73.97	59.20

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 85.90 + 69.49 – 26.62
= 128.77

The cash conversion cycle of Juniper Networks Inc has shown a fluctuating trend over the past five years. The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

In 2023, the cash conversion cycle increased significantly to 170.03 days compared to the previous year. This indicates that Juniper Networks Inc took longer to convert its investments into cash during this period.

Looking back at 2022, there was a notable decrease in the cash conversion cycle to 126.88 days from the previous year, suggesting an improvement in the company's efficiency in managing its working capital.

In 2021, the cash conversion cycle further improved significantly to 76.45 days, indicating that Juniper Networks Inc was able to convert its investments into cash faster compared to the previous year.

In 2020, there was a substantial decrease in the cash conversion cycle to 25.14 days, reflecting a highly efficient management of working capital, with the company being able to swiftly convert investments into cash.

Similarly, in 2019, the cash conversion cycle was at a low of 28.42 days, indicating efficient management of working capital and a quick conversion of investments into cash.

Overall, Juniper Networks Inc has experienced fluctuations in its cash conversion cycle over the past five years, with noticeable improvements in some years, while facing challenges in others. It is essential for the company to carefully monitor and manage its working capital to ensure optimal efficiency in converting investments into cash.