Arista Networks (ANET)

Payables 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
Payables	US$ in thousands	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	92,105	78,600	86,134	89,823
Payables turnover		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	12.40	14.75	12.97	12.03

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,781,406K ÷ $435,059K
= 6.39

Arista Networks Inc's payables turnover ratio has exhibited some fluctuations over the past eight quarters. The ratio ranged from a low of 4.74 in Q2 2022 to a high of 8.16 in Q3 2023. This ratio measures the company's efficiency in managing its accounts payable by evaluating how many times it pays off its suppliers within a given period.

A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently, which may suggest effective management of working capital and strong supplier relationships. In contrast, a lower ratio could imply that payments are being made less frequently, potentially signaling cash flow issues or strained relationships with suppliers.

Arista Networks Inc's payables turnover ratio has generally been above 5 over the analyzed periods, indicating a relatively efficient management of accounts payable. It is important for the company to monitor this ratio regularly to ensure timely payments to suppliers while maintaining optimal cash flow management.