Arista Networks (ANET)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	5,860,170	4,381,310	2,948,040	2,321,810	2,415,010
Property, plant and equipment	US$ in thousands	101,580	95,009	78,634	32,231	39,273
Fixed asset turnover		57.69	46.11	37.49	72.04	61.49

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,860,170K ÷ $101,580K
= 57.69

The fixed asset turnover ratio measures how efficiently a company is generating revenue from its fixed assets. Arista Networks Inc's fixed asset turnover has shown some fluctuations over the past five years.

In 2023, the fixed asset turnover ratio stands at 57.69, which indicates that the company generated $57.69 in revenue for every dollar invested in fixed assets. This represents an improvement from the previous year, suggesting that Arista Networks has become more efficient in utilizing its fixed assets to generate sales.

Comparing to earlier years, the ratio was relatively lower in 2022 and 2021 at 46.11 and 37.49, respectively. This implies that the company was less effective in generating revenue from its fixed assets during those periods.

However, the fixed asset turnover ratio was significantly higher in 2020 at 71.90 and in 2019 at 61.38. This suggests that Arista Networks had been more successful in utilizing its fixed assets to generate sales during those years compared to 2023.

Overall, the trend of Arista Networks Inc's fixed asset turnover indicates some variability in the company's efficiency in generating revenue from its fixed assets over the past five years. Further analysis and context about the company's business operations and capital expenditure strategies would be required to fully interpret these fluctuations in the fixed asset turnover ratio.