Arista Networks (ANET)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	2,781,406	2,711,199	2,580,338	2,382,732	2,135,125	1,939,592	1,730,255	1,564,036	1,465,746	1,355,751	1,282,428	1,199,804	1,131,234	1,077,731	1,095,821	1,120,973	1,142,173	1,159,324	1,117,197	1,080,578
Inventory	US$ in thousands	1,945,180	1,893,540	1,864,330	1,682,700	1,289,710	1,100,550	852,810	694,217	650,117	575,665	543,199	483,168	479,668	438,102	326,997	261,798	243,825	239,802	314,177	347,153
Inventory turnover		1.43	1.43	1.38	1.42	1.66	1.76	2.03	2.25	2.25	2.36	2.36	2.48	2.36	2.46	3.35	4.28	4.68	4.83	3.56	3.11

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,781,406K ÷ $1,945,180K
= 1.43

Arista Networks Inc's inventory turnover has shown a declining trend over the past eight quarters, from 1.65 in Q1 2022 to 1.15 in Q4 2023. This indicates that the company is taking longer to sell its inventory, which may raise concerns about potential obsolescence or overstocking issues. A lower inventory turnover ratio could also suggest inefficiencies in the company's operations or challenges in managing inventory levels effectively. Management should closely monitor and address the factors contributing to the decreasing inventory turnover to optimize working capital management and improve overall operational performance.