Arista Networks (ANET)

Days of sales outstanding (DSO)

		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
Receivables turnover		6.14	5.85	5.14	5.58	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
DSO	days	59.44	62.42	70.95	65.44	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

December 31, 2024 calculation

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

Days Sales Outstanding (DSO) is a financial ratio that measures the average number of days it takes for a company to collect payments from its customers after a sale is made. A lower DSO indicates that the company is able to collect payments more quickly, which is generally preferred as it ensures a healthier cash flow.

Analyzing the DSO trend for Arista Networks from March 31, 2020, to December 31, 2024, we observe some fluctuations in the DSO values over the period. The DSO ranged from a low of 49.32 days on September 30, 2020, to a high of 76.90 days on December 31, 2022. The DSO has shown both increases and decreases over time, indicating variability in the company's collection efficiency.

It is noteworthy that the DSO decreased from 74.98 days on March 31, 2022, to 54.08 days on June 30, 2023, suggesting an improvement in the company's collection process during this period. However, the DSO increased again to 70.95 days on June 30, 2024, before declining to 59.44 days on December 31, 2024.

Overall, the trend in Arista Networks' DSO indicates some variability in the efficiency of its accounts receivable collections. It would be advisable for the company to closely monitor its DSO and continue efforts to streamline its collections process to maintain a healthy cash flow position and financial stability.