Juniper Networks Inc (JNPR)

Debt-to-capital ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
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
Debt-to-capital ratio 0.26 0.26 0.28 0.27 0.27

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,616,800K ÷ ($1,616,800K + $4,492,700K)
= 0.26

The debt-to-capital ratio of Juniper Networks Inc has shown varying trends over the past five years. The ratio stood at 0.26 as of December 31, 2023, the same level as in the prior year at December 31, 2022. This indicates that the company's total debt represented 26% of its total capital, which includes both debt and equity.

Comparing this to previous years, we can see a slight decrease from 0.28 at the end of 2021 to 0.26 at the end of 2023. However, in 2020 the ratio was higher at 0.32, showing an increase in leverage that year. The ratio was at 0.27 at the end of 2019.

A debt-to-capital ratio of 0.26 suggests that Juniper Networks Inc relies more on equity financing rather than debt to fund its operations and growth. It indicates a relatively conservative approach to financing its business activities. Investors and creditors often use this ratio to assess the company's long-term solvency and financial risk.