Juniper Networks Inc (JNPR)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	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
Receivables	US$ in thousands	1,044,100	1,227,300	994,400	964,100	879,700
Total current liabilities	US$ in thousands	2,104,000	2,078,900	1,876,500	2,161,100	1,543,900
Quick ratio		1.07	1.11	1.19	1.27	1.84

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,068,100K + $139,400K + $1,044,100K) ÷ $2,104,000K
= 1.07

The quick ratio is a measure of a company's short-term liquidity and ability to meet its immediate financial obligations. It is calculated by dividing the sum of cash, cash equivalents, and accounts receivable by current liabilities.

Analyzing Juniper Networks Inc's quick ratio over the past five years, we observe a decreasing trend from 2.08 in 2019 to 1.35 in 2023. This trend indicates a relative decline in the company's ability to cover its short-term liabilities with its most liquid assets.

A quick ratio above 1.0 generally indicates that a company has an adequate level of liquid assets to cover its short-term obligations. In Juniper Networks Inc's case, the quick ratio has remained consistently above 1.0 in the past five years, suggesting that the company has generally maintained a sufficient level of liquidity to meet its short-term financial commitments.

Although the quick ratio has decreased over the years, the current quick ratio of 1.35 as of December 31, 2023, still indicates that Juniper Networks Inc has enough liquid assets to cover its current liabilities. However, investors and creditors may monitor this ratio closely to ensure that the company maintains a healthy level of liquidity in the future.