Arista Networks (ANET)

Days of inventory on hand (DOH)

		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
Inventory turnover		1.68	1.66	1.53	1.39	1.43	1.43	1.38	1.42	1.66	1.76	2.03	2.25	2.25	2.36	2.36	2.48	2.36	2.46	3.35	4.28
DOH	days	216.80	220.35	238.43	262.48	255.26	254.92	263.72	257.77	220.48	207.11	179.90	162.01	161.89	154.98	154.60	146.99	154.77	148.37	108.92	85.24

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.68
= 216.80

The days of inventory on hand (DOH) for Arista Networks have exhibited fluctuations over the reported periods. The DOH increased from 85.24 days as of March 31, 2020, to 216.80 days by December 31, 2024. This upward trend indicates an increase in the number of days it takes for Arista Networks to sell its inventory over the years.

Key points to note include a significant spike in DOH from September 30, 2022, to March 31, 2023, where it rose from 207.11 days to 257.77 days before peaking at 263.72 days as of June 30, 2023. Subsequently, there was a slight decrease in DOH to 216.80 days by December 31, 2024. This change signals variations in inventory management efficiency during these periods.

Overall, understanding the DOH trend provides insights into inventory turnover and management effectiveness. A rising DOH may indicate issues such as overstocking or challenges in sales, while a declining DOH could suggest improved efficiency in inventory management or strong sales performance. Analyzing the DOH over time allows stakeholders to assess Arista Networks' ability to manage its inventory levels effectively in relation to its sales.