Juniper Networks Inc (JNPR)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	419,400	590,100	360,900	342,200	503,100
Long-term debt	US$ in thousands	1,616,800	1,601,300	1,686,800	1,705,800	1,683,900
Total stockholders’ equity	US$ in thousands	4,492,700	4,475,100	4,316,900	4,543,500	4,610,600
Return on total capital		6.86%	9.71%	6.01%	5.48%	7.99%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $419,400K ÷ ($1,616,800K + $4,492,700K)
= 6.86%

Juniper Networks Inc's return on total capital has shown a positive trend over the past five years, increasing from 7.59% in 2019 to 9.14% in 2023. This indicates that the company has been able to generate a higher return on the total capital invested in its operations.

The gradual improvement in return on total capital suggests that Juniper Networks has been effectively utilizing its capital resources to generate profits. This could result from better operational efficiency, strategic investments, or effective cost management practices.

Overall, the increasing trend in return on total capital reflects positively on Juniper Networks' financial performance and indicates a sound ability to generate returns for both debt and equity holders.