Juniper Networks Inc (JNPR)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 379,300 | 470,100 | 539,300 | 360,900 | 342,200 |
| Interest expense | US$ in thousands | 81,300 | 76,900 | 58,600 | 50,800 | 77,000 |
| Interest coverage | 4.67 | 6.11 | 9.20 | 7.10 | 4.44 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $379,300K ÷ $81,300K
= 4.67
Interest coverage ratio measures a company's ability to meet its interest obligations on debt with its operating income. Looking at the trend for Juniper Networks Inc from 2020 to 2024, we observe a generally positive trajectory. In 2020, the interest coverage was 4.44, indicating that the company's operating income could cover its interest expenses 4.44 times. This ratio improved significantly in subsequent years, reaching 7.10 in 2021, 9.20 in 2022, and 6.11 in 2023. However, there was a slight decrease in 2024 to 4.67.
Overall, the interest coverage ratios demonstrate that Juniper Networks Inc has been steadily increasing its ability to cover interest expenses with operating income, with a minor dip in 2024. This trend indicates that the company's financial health in terms of servicing its debt obligations has generally improved over the years, albeit with some fluctuation. Further analysis of the underlying reasons for these fluctuations would provide additional insights into the company's financial performance.
Peer comparison
Dec 31, 2024