Arista Networks (ANET)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	7,003,150	6,613,150	6,311,670	6,080,190	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
Property, plant and equipment	US$ in thousands	98,845	93,034	96,282	97,949	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
Fixed asset turnover		70.85	71.08	65.55	62.08	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

December 31, 2024 calculation

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

The fixed asset turnover ratio of Arista Networks has shown a general increasing trend over the past few years, indicating improved efficiency in utilizing its fixed assets to generate sales. The ratio increased steadily from around 61.96 in March 2020 to a peak of 81.23 in June 2021 before experiencing a slight decline in the following quarters.

Although there was a noticeable drop in the fixed asset turnover in the third quarter of 2021, the ratio recovered and continued to trend upwards, reaching 70.85 by December 2024. This suggests that Arista Networks has been effectively generating sales relative to its investment in fixed assets during this period.

The fluctuation in the fixed asset turnover ratio could be influenced by various factors, such as changes in sales volume, asset utilization, and investment in fixed assets. Overall, the increasing trend in the fixed asset turnover ratio of Arista Networks reflects the company's ability to efficiently generate revenue using its fixed assets.