Juniper Networks Inc (JNPR)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	367,500	312,500	298,300	303,800	436,000	513,300	565,400	663,100	594,900	546,000	514,600	443,100	340,700	342,900	345,200	353,100	445,700	472,700	483,800	492,300
Interest expense (ttm)	US$ in thousands	81,300	82,200	82,100	81,300	80,000	76,900	71,600	65,300	58,600	53,400	50,400	49,600	50,800	57,000	63,900	70,600	77,000	78,900	81,900	84,600
Interest coverage		4.52	3.80	3.63	3.74	5.45	6.67	7.90	10.15	10.15	10.22	10.21	8.93	6.71	6.02	5.40	5.00	5.79	5.99	5.91	5.82

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $367,500K ÷ $81,300K
= 4.52

Juniper Networks Inc has shown varying levels of interest coverage over the past few years. The interest coverage ratio measures the company's ability to meet its interest obligations using its operating income.

From March 31, 2020, to June 30, 2021, the interest coverage ratio of Juniper Networks Inc remained relatively stable, fluctuating between 5.00 and 5.91. This indicates that the company was able to cover its interest expenses around 5 to 6 times with its operating income during this period.

However, there was a notable improvement in the interest coverage ratio from September 30, 2021, to June 30, 2022, where the ratio increased significantly from 6.02 to 10.21. This suggests that Juniper Networks Inc was more capable of meeting its interest payments with its operating income during this period.

From September 30, 2022, to December 31, 2024, the interest coverage ratio fluctuated in a range between 3.63 and 10.22. The declining trend in the interest coverage ratio towards the end of the period should be closely monitored, indicating a potential decrease in the company's ability to cover its interest expenses with its operating income.

In conclusion, while Juniper Networks Inc has generally maintained a reasonable interest coverage ratio over the years, investors and stakeholders should keep an eye on the company's ability to generate enough operating income to cover its interest obligations, especially considering the recent decline in the ratio towards the end of the period.