Arista Networks (ANET)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	5,860,170	5,595,280	5,262,620	4,855,590	4,381,306	3,930,215	3,502,112	3,157,541	2,948,037	2,772,060	2,628,794	2,462,045	2,317,512	2,221,576	2,274,860	2,342,611	2,415,006	2,458,186	2,362,107	2,272,951
Property, plant and equipment	US$ in thousands	101,580	102,592	101,705	97,157	95,009	96,449	91,823	87,391	78,634	75,373	32,362	32,462	32,231	32,670	35,263	37,806	39,273	40,188	41,023	41,529
Fixed asset turnover		57.69	54.54	51.74	49.98	46.11	40.75	38.14	36.13	37.49	36.78	81.23	75.84	71.90	68.00	64.51	61.96	61.49	61.17	57.58	54.73

December 31, 2023 calculation

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

The fixed asset turnover ratio for Arista Networks Inc has been showing a positive trend over the last eight quarters, indicating an improving efficiency in generating revenue from its investment in fixed assets. The ratio has been consistently increasing from 36.13 in Q1 2022 to 57.69 in Q4 2023. This suggests that the company is effectively utilizing its fixed assets to generate sales revenue. A high fixed asset turnover ratio is generally seen as favorable, as it indicates that the company is generating more revenue per dollar of investment in fixed assets. Arista Networks Inc's improving fixed asset turnover ratio reflects efficient asset management and effective utilization of its fixed assets to drive sales growth.