Arista Networks (ANET)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	255.26	254.92	263.72	257.77	220.48	207.11	179.90	162.01	161.89	154.98	154.60	146.99	154.77	148.37	108.92	85.24	77.92	75.50	102.64	117.26
Days of sales outstanding (DSO)	days	63.82	54.36	54.08	64.86	76.90	60.51	61.05	74.98	63.95	52.09	50.57	56.40	61.35	49.32	61.49	54.87	59.24	66.41	53.01	43.56
Number of days of payables	days	57.09	36.21	49.78	50.58	39.76	52.40	58.03	47.77	50.46	36.41	41.31	41.64	43.31	55.24	40.93	27.62	29.43	24.75	28.14	30.34
Cash conversion cycle	days	261.99	273.07	268.02	272.05	257.62	215.21	182.92	189.22	175.38	170.66	163.86	161.75	172.81	142.46	129.48	112.50	107.73	117.16	127.52	130.48

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 255.26 + 63.82 – 57.09
= 261.99

The cash conversion cycle for Arista Networks Inc has shown some fluctuation over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 311.00 days, indicating the number of days it takes for the company to convert its investments in inventory and other resources back into cash from sales.

The trend in the cash conversion cycle over the periods shows an increase from Q2 2022 through Q3 2023, indicating that the company took longer to convert its resources back into cash during these periods. However, there was a slight decrease in Q4 2023 compared to the previous quarter, which may suggest an improvement in the company's efficiency in managing its working capital.

Overall, it is important for Arista Networks Inc to continue monitoring and managing its cash conversion cycle to ensure optimal liquidity and efficiency in its operations. fluctuations in the cash conversion cycle can provide insights into the company's working capital management and overall financial health.