Arista Networks (ANET)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		6.14	5.72	4.75	5.71	5.96
DSO	days	59.44	63.82	76.90	63.95	61.24

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.14
= 59.44

Arista Networks' Days Sales Outstanding (DSO) has shown fluctuations over the past five years. As of December 31, 2020, the DSO stood at 61.24 days, indicating the average number of days it takes for the company to collect payment from its customers. Over the following years, there was an increase in DSO to 63.95 days by December 31, 2021, followed by a significant spike to 76.90 days by December 31, 2022. This suggests a potential delay in collecting payments or managing accounts receivable effectively.

However, the company managed to bring down the DSO to 63.82 days by December 31, 2023, indicating a positive trend in improving its receivables turnover efficiency. By December 31, 2024, Arista Networks further reduced its DSO to 59.44 days, reflecting enhanced cash flow management and potentially more effective credit policies or customer collections.

Overall, while there was some variability in Arista Networks' DSO over the years, the company appears to have made efforts to optimize its accounts receivable collection process, leading to better working capital management and potentially improved liquidity.