Arista Networks (ANET)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	2,762,360	1,938,610	671,707	620,813	893,219
Short-term investments	US$ in thousands	5,541,120	3,069,360	2,352,020	2,787,500	1,979,650
Total current liabilities	US$ in thousands	2,732,220	1,919,440	1,293,530	1,109,830	768,243
Cash ratio		3.04	2.61	2.34	3.07	3.74

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,762,360K + $5,541,120K) ÷ $2,732,220K
= 3.04

The cash ratio of Arista Networks has shown a declining trend from 3.74 in December 31, 2020, to 2.34 in December 31, 2022, before slightly increasing to 3.04 by December 31, 2024. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. Although the ratio has fluctuated over the years, the company has generally maintained a strong ability to cover its short-term obligations with its available cash. It is important for Arista Networks to continue monitoring and managing its cash position to ensure liquidity and financial stability.