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Juniper Networks Financial Strength

: 6 (As of Jun. 2019)
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Juniper Networks has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Juniper Networks's Interest Coverage for the quarter that ended in Jun. 2019 was 4.72. Juniper Networks's debt to revenue ratio for the quarter that ended in Jun. 2019 was 1.78. As of today, Juniper Networks's Altman Z-Score is 1.67.


Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Juniper Networks Financial Strength Distribution

* The bar in red indicates where Juniper Networks's Financial Strength falls into.



Juniper Networks Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Juniper Networks's Interest Expense for the months ended in Jun. 2019 was USD -22 Mil. Its Operating Income for the months ended in Jun. 2019 was USD 104 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2019 was USD 1,658 Mil.

Juniper Networks's Interest Coverage for the quarter that ended in Jun. 2019 is

Interest Coverage=-1*Operating Income (Q: Jun. 2019 )/Interest Expense (Q: Jun. 2019 )
=-1*103.8/-22
=4.72

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Juniper Networks's Debt to Revenue Ratio for the quarter that ended in Jun. 2019 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2019 ) / Revenue (Q: Jun. 2019 )
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(299.5 + 1658) / 1102.5
=1.78

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Juniper Networks has a Z-score of 1.67, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Juniper Networks  (NYSE:JNPR) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Juniper Networks has the Financial Strength Rank of 6.


Juniper Networks Financial Strength Related Terms


Juniper Networks Financial Strength Headlines

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