Juniper Networks Inc (JNPR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 58.76% | 57.54% | 55.80% | 57.86% | 57.90% |
| Operating profit margin | 5.75% | 8.45% | 9.79% | 11.27% | 12.24% |
| Pretax margin | 5.87% | 6.27% | 10.12% | 6.55% | 5.97% |
| Net profit margin | 5.67% | 5.57% | 8.88% | 5.34% | 5.80% |
Juniper Networks Inc's gross profit margin has been relatively stable over the past few years, ranging from 55.80% to 58.76%. This indicates that the company has been successful in managing its cost of goods sold and generating a consistent level of profitability from its core operations.
In terms of operating profit margin, Juniper Networks Inc has experienced a gradual decline from 12.24% in 2020 to 5.75% in 2024. This trend suggests that the company's operating expenses may have been increasing at a faster rate compared to its gross profit, impacting its overall profitability.
The pretax margin of Juniper Networks Inc has shown some variability, with a peak of 10.12% in 2022 and a low of 5.87% in 2024. This indicates fluctuations in the company's ability to manage its operating expenses and interest payments relative to its pre-tax income.
Similarly, the net profit margin of Juniper Networks Inc has also displayed some inconsistency, with the highest margin at 8.88% in 2022 and the lowest at 5.34% in 2021. This suggests that the company's bottom-line profitability has not been consistently strong over the years.
Overall, while Juniper Networks Inc has maintained a healthy gross profit margin, its operating profit margin, pretax margin, and net profit margin have shown some signs of weakness and volatility, indicating potential challenges in managing costs and improving overall profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.92% | 4.94% | 5.57% | 6.01% | 5.80% |
| Return on assets (ROA) | 2.88% | 3.26% | 5.05% | 2.84% | 2.75% |
| Return on total capital | 7.93% | 10.46% | 12.05% | 8.36% | 7.53% |
| Return on equity (ROE) | 6.02% | 6.90% | 10.52% | 5.85% | 5.67% |
Juniper Networks Inc's profitability ratios show mixed performance over the past five years.
1. Operating return on assets (Operating ROA) has been relatively stable, increasing from 5.80% in 2020 to 6.01% in 2021, but then declining to 4.94% in 2023 before a sudden drop to 2.92% in 2024. This indicates that the company's ability to generate operating profit from its assets fluctuated during this period.
2. Return on assets (ROA) also displayed variability, with a significant increase from 2.75% in 2020 to 5.05% in 2022, followed by a drop to 2.88% in 2024. This metric reflects the overall profitability of the company's assets, including financing as well as operational efficiency.
3. Return on total capital saw a notable improvement from 7.53% in 2020 to 12.05% in 2022, but then decreased to 7.93% in 2024. This ratio measures the company's ability to generate returns on both equity and debt financing.
4. Return on equity (ROE) experienced fluctuations, with a peak of 10.52% in 2022 and a decline to 6.02% in 2024. ROE illustrates the profitability generated for the company's shareholders from their investment.
Overall, Juniper Networks Inc's profitability ratios indicate some volatility in the company's ability to generate profits from its assets, with varying performance levels in different years. Investors and stakeholders should consider the trends in these ratios to assess the company's financial health and sustainability.