Juniper Networks Inc (JNPR)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	419,400	505,200	556,900	656,200	590,100	543,400	514,100	443,100	360,900	245,000	251,700	269,700	342,200	478,900	488,400	482,800	503,100	522,600	560,200	637,200
Interest expense (ttm)	US$ in thousands	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	88,700	93,800	97,500	101,400
Interest coverage		5.24	6.57	7.78	10.05	10.07	10.18	10.20	8.93	7.10	4.30	3.94	3.82	4.44	6.07	5.96	5.71	5.67	5.57	5.75	6.28

December 31, 2023 calculation

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

Based on the data provided, Juniper Networks Inc's interest coverage has been consistently improving over the past eight quarters. The interest coverage ratio, which measures the company's ability to meet its interest payments from its operating income, has shown a positive trend.

In Q4 2022, Juniper Networks Inc had an interest coverage ratio of 13.71, which increased steadily to 19.00 in Q4 2023. This indicates that the company's operating income is more than sufficient to cover its interest expenses, reflecting a strong financial position and liquidity.

The upward trend in the interest coverage ratio suggests that Juniper Networks Inc has been effectively managing its debt obligations and generating healthy levels of operating income. Investors and creditors may view this improvement positively as it signals financial stability and the ability to honor debt commitments.