Arista Networks (ANET)

Payables 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
Payables	US$ in thousands	381,083	289,161	297,832	223,305	435,059	268,972	351,920	330,171	232,572	278,469	275,093	204,675	202,636	135,252	145,159	136,885	134,235	163,102	122,872	84,815
Payables turnover		8.10	10.14	9.53	12.61	6.39	10.08	7.33	7.22	9.18	6.97	6.29	7.64	7.23	10.02	8.83	8.77	8.43	6.61	8.92	13.22

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,088,593K ÷ $381,083K
= 8.10

Arista Networks' payables turnover ratio has shown fluctuations over the years based on the provided data. The payables turnover ratio measures how efficiently a company is managing its trade credit payments with suppliers.

From March 31, 2020, to December 31, 2024, the payables turnover ratio ranged from a low of 6.29 to a high of 13.22. Generally, a higher payables turnover ratio indicates that the company is taking less time to pay its suppliers, which could signal effective management of accounts payable.

During this period, there were periods where the payables turnover ratio increased, indicating that Arista Networks was paying its suppliers more quickly. Conversely, there were also periods where the ratio decreased, suggesting a longer payment cycle.

It is essential to analyze the payables turnover ratio in conjunction with other financial ratios and factors to get a holistic view of Arista Networks' financial health and operational efficiency.