Juniper Networks Inc (JNPR)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 367,500 | 312,500 | 298,300 | 303,800 | 436,000 | 513,300 | 565,400 | 663,100 | 594,900 | 546,000 | 514,600 | 443,100 | 340,700 | 342,900 | 345,200 | 353,100 | 445,700 | 472,700 | 483,800 | 492,300 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,784,200 | 4,642,700 | 4,502,000 | 4,481,200 | 4,492,700 | 4,331,200 | 4,354,900 | 4,435,200 | 4,475,100 | 4,338,100 | 4,248,700 | 4,266,900 | 4,316,900 | 4,383,800 | 4,340,900 | 4,429,600 | 4,543,500 | 4,560,800 | 4,464,300 | 4,390,700 |
| Return on total capital | 7.68% | 6.73% | 6.63% | 6.78% | 9.70% | 11.85% | 12.98% | 14.95% | 13.29% | 12.59% | 12.11% | 10.38% | 7.89% | 7.82% | 7.95% | 7.97% | 9.81% | 10.36% | 10.84% | 11.21% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $367,500K ÷ ($—K + $4,784,200K)
= 7.68%
Return on total capital is a key financial metric that indicates how efficiently a company is utilizing its overall capital to generate profits. Looking at the data provided for Juniper Networks Inc, we observe fluctuations in the return on total capital over the quarters.
Starting with a strong 11.21% in March 2020, the return on total capital declined gradually over the next few quarters, reaching its lowest point of 6.78% in March 2024. This indicates a decrease in the company's ability to generate returns relative to its total invested capital during this period.
However, there was a notable improvement in the return on total capital in the following quarter, June 2024, which increased slightly to 6.63%. Subsequently, the return on total capital continued to show signs of recovery, with further increases in September and December 2024, reaching 6.73% and 7.68%, respectively.
Overall, the return on total capital for Juniper Networks Inc has shown variability over the quarters, with periods of decline followed by periods of improvement. It is important for the company to monitor this metric closely to ensure effective capital utilization and sustainable profitability in the long term.
Peer comparison
Dec 31, 2024