Juniper Networks Inc (JNPR)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 1,224,300 1,068,100 880,100 922,500 1,361,900
Short-term investments US$ in thousands 160,300 139,400 210,300 315,500 412,100
Total current liabilities US$ in thousands 2,642,000 2,104,000 2,078,900 1,876,500 2,161,100
Cash ratio 0.52 0.57 0.52 0.66 0.82

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,224,300K + $160,300K) ÷ $2,642,000K
= 0.52

The cash ratio of Juniper Networks Inc has shown a decreasing trend over the past five years, declining from 0.82 in December 2020 to 0.52 in both December 2022 and December 2024. The cash ratio measures the company's ability to cover its short-term liabilities using its cash and cash equivalents alone. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources.

While Juniper Networks Inc's cash ratio has decreased, it is important to note that a ratio above 1 would indicate that the company has sufficient cash to cover its current liabilities. Therefore, despite the decline, the company still maintains a ratio above 0, suggesting that it has some liquidity to meet its short-term obligations. However, management may need to monitor this trend closely to ensure the company's financial health and stability in the future.