Arista Networks (ANET)

Days of sales outstanding (DSO)

		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
Receivables turnover		5.72	6.71	6.75	5.63	4.75	6.03	5.98	4.87	5.71	7.01	7.22	6.47	5.95	7.40	5.94	6.65	6.16	5.50	6.89	8.38
DSO	days	63.82	54.36	54.08	64.86	76.90	60.51	61.05	74.98	63.95	52.09	50.57	56.40	61.35	49.32	61.49	54.87	59.24	66.41	53.01	43.56

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.72
= 63.82

To analyze Arista Networks Inc.'s Days Sales Outstanding (DSO) based on the provided data:

1. Trend Analysis:
- In Q4 2023, the DSO is 63.82 days, showing an increase from the previous quarter (Q3 2023) where it was 54.36 days.
- Compared to Q2 2023 (54.08 days) and Q1 2023 (64.86 days), the DSO in Q4 2023 is relatively higher.
- However, it is lower than the DSO reported in Q4 2022 (76.90 days), indicating an improvement in collection efficiency.

2. Historical Performance:
- The DSO has shown fluctuations over the past quarters, with the lowest DSO observed in Q3 2022 (60.51 days) and the highest in Q4 2022 (76.90 days).
- The DSO in Q4 2023 is closer to the average DSO of the past quarters, suggesting a certain level of stability in the collection period.

3. Interpretation:
- An increase in DSO could imply a slower collection of receivables, potentially impacting cash flows and liquidity.
- The trend of DSO should be monitored continuously to ensure efficient management of accounts receivable and timely collections.

4. Comparative Analysis:
- Compared to industry benchmarks or competitors, Arista Networks Inc.'s DSO can provide insights into its credit policies, customer payment behavior, and overall financial health.

In conclusion, the increase in DSO in Q4 2023 compared to the previous quarter should be further investigated to determine the underlying factors and implications for the company's financial performance and operational efficiency.