Juniper Networks Inc (JNPR)

Interest coverage

		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
Interest expense	US$ in thousands	80,000	58,600	50,800	77,000	88,700
Interest coverage		5.24	10.07	7.10	4.44	5.67

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $419,400K ÷ $80,000K
= 5.24

The interest coverage ratio for Juniper Networks Inc has shown fluctuating trends over the past five years. The ratio indicates the company's ability to meet interest obligations on its debt with its operating income.

In 2019, Juniper Networks Inc had a very high interest coverage ratio of 49.74, which indicates a strong ability to cover its interest payments with its operating income. However, this ratio decreased in the following years, reaching its lowest point in 2020 at 10.35, suggesting a potentially weakened capacity to cover interest expenses relative to previous years.

Subsequently, there was an improvement in the interest coverage ratio in 2021 and 2022, reaching 11.99 and 13.71, respectively. This indicates a better ability to cover interest payments compared to the previous year.

In 2023, the interest coverage ratio further improved to 19.00, showing a significant increase in the ability to meet interest obligations with operating income. Overall, the fluctuations in the interest coverage ratio suggest varying levels of financial health and risk for Juniper Networks Inc over the analyzed period.