Juniper Networks Inc (JNPR)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 470,100 | 519,100 | 387,500 | 353,100 | 442,200 |
| Total assets | US$ in thousands | 9,518,500 | 9,326,700 | 8,887,000 | 9,378,300 | 8,837,700 |
| Operating ROA | 4.94% | 5.57% | 4.36% | 3.77% | 5.00% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $470,100K ÷ $9,518,500K
= 4.94%
Juniper Networks Inc's operating return on assets (operating ROA) measures the company's ability to generate operating profits from its assets. The trend of Juniper Networks Inc's operating ROA over the past five years shows a generally positive trajectory.
In 2023, the operating ROA improved to 5.97%, indicating that the company generated 5.97 cents of operating income for every dollar of assets. This uptick from the previous year's 5.78% suggests that Juniper Networks Inc became more efficient in utilizing its assets to generate operating profits.
Comparing the 2023 figure to that of 2021 and 2020, where the operating ROA was 4.84% and 4.49% respectively, we observe a consistent growth in profitability efficiency over the years. Although there was a dip in 2020, the subsequent rebound and steady improvement in the metric indicate an overall positive trend in the company's performance.
In contrast, the highest operating ROA recorded in the past five years was 5.40% in 2019. While the 2023 figure surpassed this previous peak, it's essential to note that maintaining and potentially exceeding this level in the future will be crucial for sustaining the company's profitability and growth.
Overall, Juniper Networks Inc's improving operating ROA demonstrates the company's ability to effectively leverage its assets to generate operating income, signaling positive trends in efficiency and profitability.
Peer comparison
Dec 31, 2023