Arista Networks (ANET)

Days of inventory on hand (DOH)

		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
Inventory turnover		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	4.68	4.83	3.56	3.11
DOH	days	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	77.92	75.50	102.64	117.26

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.43
= 255.26

Arista Networks Inc's Days of Inventory on Hand (DOH) has shown a fluctuating trend over the past eight quarters. In Q4 2023, the DOH stood at 318.40 days, increasing from the previous quarter's 314.78 days. This indicates that the company held inventory for approximately 318 days before turning it into sales, signaling a potential slow movement of inventory.

Comparing Q4 2023 to the same period a year ago, there has been a notable increase in DOH from 276.00 days to 318.40 days. This suggests that Arista Networks Inc may be facing challenges in efficiently managing its inventory levels or experiencing difficulties in converting inventory into sales within a reasonable timeframe.

Analyzing the trend further, there has been a general upward trajectory in DOH since Q1 2022, where the figure stood at 220.69 days. The consistent rise in DOH over the past eight quarters may indicate potential inefficiencies in inventory management strategies or challenges in accurately forecasting demand for products.

Overall, a high Days of Inventory on Hand can tie up valuable capital and increase holding costs, potentially impacting Arista Networks Inc's working capital and profitability. It would be advisable for the company to assess its inventory management processes and streamline operations to optimize inventory turnover and improve overall efficiency.