Arista Networks (ANET)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.72 | 4.75 | 5.71 | 5.96 | 6.16 | |
| DSO | days | 63.82 | 76.90 | 63.95 | 61.24 | 59.24 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.72
= 63.82
Arista Networks Inc has shown fluctuations in its Days Sales Outstanding (DSO) over the past five years. DSO measures the average number of days a company takes to collect revenue after a sale is made.
In 2023, the DSO stood at 63.82 days, showing an improvement compared to 76.90 days in 2022. This suggests that Arista Networks was able to collect its accounts receivable more efficiently in 2023. However, when compared to 2021 and 2020, where DSO was 63.95 days and 61.35 days respectively, there was only a slight improvement in DSO performance.
On the positive side, the 2023 DSO is higher than in 2019 when it was 59.35 days. This indicates that over the years, the company has been taking longer to collect its revenues. It's important for Arista Networks to continue monitoring and managing its DSO to ensure efficient cash flow management and working capital optimization.
Peer comparison
Dec 31, 2023