Juniper Networks Inc (JNPR)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.17 | 0.17 | 0.19 | 0.18 | 0.19 |
| Debt-to-capital ratio | 0.26 | 0.26 | 0.28 | 0.27 | 0.27 |
| Debt-to-equity ratio | 0.36 | 0.36 | 0.39 | 0.38 | 0.37 |
| Financial leverage ratio | 2.12 | 2.08 | 2.06 | 2.06 | 1.92 |
The solvency ratios of Juniper Networks Inc provide valuable insights into the company's ability to meet its long-term financial obligations. Over the past five years, the debt-to-assets ratio has remained stable, ranging between 0.17 and 0.23. This indicates that Juniper Networks has maintained a conservative level of debt relative to its total assets, suggesting a lower risk of insolvency.
Similarly, the debt-to-capital ratio and debt-to-equity ratio also demonstrate a consistent trend of manageable debt levels from 2020 to 2023. Both ratios have shown a slight decrease over the years, reflecting a decreasing reliance on debt to finance the company's operations. This is a positive sign as lower debt ratios imply lower financial risk and better solvency.
The financial leverage ratio, which measures the extent to which the company is financing its operations through debt, has gradually increased from 1.92 in 2019 to 2.12 in 2023. While this increase may indicate a higher reliance on debt financing, it is important to note that the ratio is still at a manageable level, suggesting that Juniper Networks has a reasonable balance between debt and equity in its capital structure.
Overall, the solvency ratios of Juniper Networks Inc indicate a prudent approach towards managing debt, maintaining a strong financial position, and ensuring the company's ability to meet its long-term financial obligations.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 5.24 | 10.07 | 7.10 | 4.44 | 5.67 |
Juniper Networks Inc's interest coverage ratio has shown a generally positive trend over the past five years. The ratio has improved consistently from 10.35 in 2020 to 19.00 in 2023, indicating the company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio is favorable as it suggests that Juniper Networks Inc has sufficient earnings to cover its interest expenses, reducing the risk of default on its debt obligations. Despite a slight decrease from 2022 to 2023, the overall trend reflects a strong financial position in terms of servicing its debt. However, it is important to continue monitoring this ratio in the future to ensure the company's ability to manage debt repayments.