Arista Networks (ANET)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		1.68	1.43	1.67	2.25	2.41
DOH	days	216.81	255.26	217.99	161.89	151.54

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.68
= 216.81

The days of inventory on hand (DOH) for Arista Networks have shown an increasing trend over the years, indicating a longer period of time it takes to sell its inventory.

As of December 31, 2020, Arista Networks had 151.54 days of inventory on hand, which increased to 161.89 days by December 31, 2021. The DOH further rose to 217.99 days by December 31, 2022, and significantly increased to 255.26 days by December 31, 2023.

However, there was a slight decrease in the DOH to 216.81 days by December 31, 2024, compared to the previous year. This could imply a potential improvement in inventory management efficiency.

The upward trend in DOH may suggest challenges in inventory turnover and liquidity management for Arista Networks. The company may need to assess its inventory management strategies to optimize its working capital and potentially reduce carrying costs associated with excess inventory levels.