Arista Networks (ANET)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	7,003,150	5,860,170	4,381,310	2,948,040	2,321,810
Receivables	US$ in thousands	1,140,480	1,024,570	923,096	516,509	389,540
Receivables turnover		6.14	5.72	4.75	5.71	5.96

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $7,003,150K ÷ $1,140,480K
= 6.14

The receivables turnover ratio for Arista Networks has shown some fluctuations over the past five years. It was 5.96 in December 2020, decreased to 5.71 in December 2021, fell further to 4.75 in December 2022, then improved to 5.72 in December 2023, and increased to 6.14 in December 2024. Overall, the decreasing trend from 2020 to 2022 suggests that the company took longer to collect its accounts receivables during this period. However, the subsequent increase in the ratio indicates that Arista Networks managed to improve its efficiency in collecting receivables in the latter years. It's important to monitor this ratio to ensure efficient management of accounts receivables and maintain a healthy cash flow position.