Arista Networks (ANET)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	5,860,170	4,381,310	2,948,040	2,321,810	2,415,010
Total current assets	US$ in thousands	8,390,240	5,550,750	4,812,680	3,837,000	3,471,640
Total current liabilities	US$ in thousands	1,909,610	1,293,530	1,109,830	768,243	597,074
Working capital turnover		0.90	1.03	0.80	0.76	0.84

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,860,170K ÷ ($8,390,240K – $1,909,610K)
= 0.90

The working capital turnover of Arista Networks Inc has fluctuated over the past five years, ranging from 0.76 to 1.03. The trend indicates that the company's efficiency in utilizing its working capital to generate revenue has varied. In 2022, the ratio was the highest at 1.03, suggesting that the company was able to generate more revenue relative to its working capital. Conversely, in 2020, the ratio was the lowest at 0.76, indicating a lower efficiency in utilizing working capital. Overall, the working capital turnover ratio for Arista Networks Inc has shown some volatility, highlighting potential fluctuations in the company's operational efficiency and financial management.