Juniper Networks Inc (JNPR)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,068,100 | 880,100 | 922,500 | 1,361,900 | 1,215,800 |
| Short-term investments | US$ in thousands | 139,400 | 210,300 | 315,500 | 412,100 | 738,000 |
| Total current liabilities | US$ in thousands | 2,104,000 | 2,078,900 | 1,876,500 | 2,161,100 | 1,543,900 |
| Cash ratio | 0.57 | 0.52 | 0.66 | 0.82 | 1.27 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,068,100K
+ $139,400K)
÷ $2,104,000K
= 0.57
The cash ratio of Juniper Networks Inc has been declining over the past five years, starting at 1.51 in 2019 and decreasing to 0.86 in 2023. This ratio measures the company's ability to cover its short-term obligations using only its cash and cash equivalents. A ratio above 1 indicates that the company has enough cash to cover its current liabilities.
A decreasing trend in the cash ratio may indicate a declining ability to meet short-term obligations solely from cash on hand. It could suggest that the company is becoming less liquid or efficient in managing its cash resources.
It is important to further investigate the reasons behind this declining trend to understand the company's cash management practices, liquidity position, and potential impacts on its financial stability.
Peer comparison
Dec 31, 2023