Arista Networks (ANET)

Total asset 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
Total assets	US$ in thousands	14,043,900	12,846,700	11,623,200	10,550,200	9,956,640	9,069,040	8,186,040	7,543,070	6,775,410	6,162,010	5,824,540	6,108,190	5,734,430	5,437,350	5,208,280	4,893,730	4,738,920	4,399,370	4,335,850	4,111,840
Total asset turnover		0.50	0.51	0.54	0.58	0.59	0.62	0.64	0.64	0.65	0.64	0.60	0.52	0.51	0.51	0.50	0.50	0.49	0.50	0.52	0.57

December 31, 2024 calculation

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

The total asset turnover ratio of Arista Networks has shown some fluctuations over the past years, ranging from 0.49 to 0.65. The ratio measures how efficiently the company generates revenue from its total assets.

The trend indicates a slight decline from the initial values recorded in 2020. There was a dip in the ratio from 2020 to 2021, followed by a gradual increase up to 2022, where it peaked at 0.65. However, the ratio decreased thereafter to 0.58 by March 31, 2024.

Overall, a total asset turnover ratio between 0.50 and 0.60 suggests that Arista Networks generates revenue relative to its total assets at a moderate level. The company should continue to monitor this ratio to ensure it remains efficient in utilizing its assets to generate sales.