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.