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.
Peer comparison
Dec 31, 2023