Arista Networks (ANET)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	7,003,150	5,860,170	4,381,310	2,948,040	2,321,810
Property, plant and equipment	US$ in thousands	98,845	101,580	95,009	78,634	32,231
Fixed asset turnover		70.85	57.69	46.11	37.49	72.04

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,003,150K ÷ $98,845K
= 70.85

The fixed asset turnover ratio for Arista Networks has displayed fluctuations over the period from December 31, 2020, to December 31, 2024.

At the end of 2020, the fixed asset turnover ratio was notably high at 72.04, indicating that the company generated $72.04 in revenue for every dollar invested in fixed assets during that period. However, this ratio decreased significantly by the end of 2021 to 37.49, suggesting a lower efficiency in utilizing its fixed assets to generate revenue.

Subsequently, there was an improvement in the fixed asset turnover ratio by the end of 2022, reaching 46.11, which may indicate enhanced efficiency in fixed asset utilization. The ratio continued to increase further by the end of 2023 to 57.69, reflecting a more effective utilization of fixed assets to generate revenue.

By the end of 2024, the fixed asset turnover ratio peaked at 70.85, signaling a higher level of productivity and efficiency in generating revenue from the company's fixed assets. Overall, the trend in the fixed asset turnover ratio for Arista Networks indicates fluctuations but an overall improvement in the efficiency of utilizing fixed assets over the analyzed period.