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.
Peer comparison
Dec 31, 2023