Arista Networks (ANET)

Working capital 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 current assets	US$ in thousands	11,910,800	8,400,060	5,550,750	4,812,680	3,837,000
Total current liabilities	US$ in thousands	2,732,220	1,919,440	1,293,530	1,109,830	768,243
Working capital turnover		0.76	0.90	1.03	0.80	0.76

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,003,150K ÷ ($11,910,800K – $2,732,220K)
= 0.76

The working capital turnover ratio for Arista Networks has shown fluctuations over the years as per the provided data. In 2020, the ratio stood at 0.76, indicating that the company generated 76 cents of revenue for every dollar of working capital invested during that period. Subsequently, the ratio increased to 0.80 by the end of 2021, suggesting a slight improvement in the efficiency of working capital utilization.

In 2022, Arista Networks saw a notable rise in the working capital turnover ratio to 1.03, implying that the company generated $1.03 in revenue for each dollar of working capital deployed. This increase signals a more efficient management of working capital during the year. However, in 2023, the ratio dipped to 0.90, indicating a decrease in the efficiency of working capital turnover compared to the previous year.

By the end of 2024, the working capital turnover ratio reverted back to 0.76, aligning with the ratio observed in 2020. This suggests a regression in the efficiency of working capital utilization, potentially pointing towards challenges or changes in the company's operating cycle during the year.

Overall, the trend in Arista Networks' working capital turnover ratio has displayed variations, reflecting fluctuations in the company's ability to generate revenue relative to its working capital investments over the years analyzed.