Arista Networks (ANET)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	3,088,593	2,931,867	2,837,813	2,816,254	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
Inventory	US$ in thousands	1,834,570	1,769,960	1,853,780	2,025,200	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
Inventory turnover		1.68	1.66	1.53	1.39	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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,088,593K ÷ $1,834,570K
= 1.68

The inventory turnover for Arista Networks has shown a declining trend over the past few years, indicating that the company is taking a longer time to sell its inventory. The ratio decreased from 4.28 on March 31, 2020, to 1.68 on December 31, 2024. This may suggest potential issues with inventory management, such as overstocking or slowing demand for the company's products. A decreasing inventory turnover ratio could also lead to increased carrying costs and potential obsolescence risks. Arista Networks may need to review and adjust its inventory management strategies to optimize its inventory turnover and improve overall efficiency in its operations.