Arista Networks (ANET)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	2,415,006	2,458,186	2,362,107	2,272,951
Total current assets	US$ in thousands	8,390,240	7,655,000	6,851,560	6,270,530	5,550,750	5,031,680	4,729,200	5,105,170	4,812,680	4,523,960	4,328,400	4,002,900	3,837,000	3,653,870	3,576,880	3,336,900	3,471,640	3,240,420	3,028,520	2,900,970
Total current liabilities	US$ in thousands	1,909,610	1,846,720	1,655,790	1,584,910	1,293,530	1,254,910	1,278,030	1,369,000	1,109,830	893,387	859,935	786,532	768,243	664,783	640,181	573,007	597,074	548,189	525,020	543,193
Working capital turnover		0.90	0.96	1.01	1.04	1.03	1.04	1.01	0.85	0.80	0.76	0.76	0.77	0.76	0.74	0.77	0.85	0.84	0.91	0.94	0.96

December 31, 2023 calculation

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

The working capital turnover for Arista Networks Inc has shown some fluctuations over the past quarters. The ratio has been between 0.85 and 1.04 in the last eight quarters. A higher working capital turnover ratio typically indicates that the company is efficiently utilizing its working capital to generate sales revenue.

In Q4 2023, the working capital turnover was 0.90, representing a slight decrease from the previous quarter. This suggests that the company may have experienced a decrease in sales relative to its working capital. However, the ratio is still within a reasonable range.

Overall, the working capital turnover ratio has been relatively stable for Arista Networks Inc, showing that the company has been maintaining an efficient level of working capital management to support its operations and generate revenue. Monitoring this ratio over time can provide insights into the company's ability to efficiently use its working capital resources.