Arista Networks (ANET)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	2,781,440	2,159,460	1,465,750	1,155,330	1,155,570
Inventory	US$ in thousands	1,945,180	1,289,710	650,117	479,668	243,825
Inventory turnover		1.43	1.67	2.25	2.41	4.74

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,781,440K ÷ $1,945,180K
= 1.43

The inventory turnover ratio of Arista Networks Inc has generally been on a downward trend over the past five years, decreasing from 3.55 in 2019 to 1.15 in 2023. A lower inventory turnover ratio can indicate inefficiencies in managing inventory levels or challenges in selling products quickly. This could potentially lead to higher carrying costs and decreased liquidity. It is important for the company to monitor and address factors impacting inventory turnover to improve operational efficiency and financial performance.