Arista Networks (ANET)

Receivables 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
Revenue (ttm)	US$ in thousands	7,003,150	6,613,150	6,311,670	6,080,190	5,860,170	5,595,280	5,262,620	4,855,590	4,381,306	3,930,215	3,502,112	3,157,541	2,948,037	2,772,060	2,628,794	2,462,045	2,317,512	2,221,576	2,274,860	2,342,611
Receivables	US$ in thousands	1,140,480	1,130,900	1,226,800	1,090,040	1,024,570	833,374	779,726	862,875	923,096	651,512	585,786	648,606	516,509	395,590	364,214	380,466	389,540	300,217	383,225	352,159
Receivables turnover		6.14	5.85	5.14	5.58	5.72	6.71	6.75	5.63	4.75	6.03	5.98	4.87	5.71	7.01	7.22	6.47	5.95	7.40	5.94	6.65

December 31, 2024 calculation

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

Arista Networks' receivables turnover ratio fluctuated over the period analyzed. The ratio measures how efficiently the company collects outstanding receivables during a specific period. A higher turnover ratio indicates that the company is collecting its receivables more quickly.

From March 31, 2020, to September 30, 2021, Arista Networks saw an increasing trend in its receivables turnover ratio, peaking at 7.40 in September 30, 2020. This suggests that the company was managing its receivables effectively during this period.

However, starting from December 31, 2021, the receivables turnover ratio began to decline, reaching a low of 4.75 on December 31, 2022. This decrease may indicate that Arista Networks was taking longer to collect its receivables, potentially leading to cash flow challenges.

There was a slight recovery in the receivables turnover ratio in the subsequent quarters, with the ratio fluctuating between 4.87 and 6.75. It is important for Arista Networks to closely monitor and manage its receivables turnover ratio to ensure efficient cash flow management and timely collection of outstanding dues.