Arista Networks (ANET)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	1,938,610	671,707	620,813	893,219	1,111,290
Short-term investments	US$ in thousands	3,069,360	2,352,020	2,787,500	1,979,650	1,613,080
Total current liabilities	US$ in thousands	1,909,610	1,293,530	1,109,830	768,243	597,074
Cash ratio		2.62	2.34	3.07	3.74	4.56

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,938,610K + $3,069,360K) ÷ $1,909,610K
= 2.62

The cash ratio of Arista Networks Inc has shown a declining trend over the past five years, decreasing from 4.75 in 2019 to 2.84 in 2023. This indicates a potential reduction in the company's ability to cover its short-term liabilities solely with its available cash and cash equivalents. The gradual decrease in the cash ratio may raise concerns about the company's liquidity position and its ability to meet immediate financial obligations. It is essential for stakeholders to closely monitor this trend and consider implementing strategies to improve the company's liquidity position to ensure its financial health and stability.