Arista Networks (ANET)

Total asset 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
Total assets	US$ in thousands	14,043,900	9,956,640	6,775,410	5,734,430	4,738,920
Total asset turnover		0.50	0.59	0.65	0.51	0.49

December 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $7,003,150K ÷ $14,043,900K
= 0.50

The total asset turnover of Arista Networks has shown some fluctuations over the past five years. In 2020, the company had a total asset turnover of 0.49, which increased slightly to 0.51 in 2021. There was a significant improvement in 2022 with a total asset turnover of 0.65, indicating the company was generating more revenue relative to its total assets. However, in 2023, the total asset turnover declined to 0.59, and further decreased to 0.50 in 2024.

Overall, the trend in total asset turnover suggests that Arista Networks has been relatively efficient in generating revenue from its total assets, with the peak in 2022 indicating a particularly strong performance. However, the decline in subsequent years indicates a potential decrease in asset utilization efficiency, which may require further investigation to understand the underlying causes.