Arista Networks (ANET)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	1,938,610	1,748,820	1,261,840	956,341	671,707	716,253	493,246	635,025	620,813	630,982	893,688	843,336	893,219	970,349	800,182	761,333	1,111,290	1,095,260	944,414	809,491
Short-term investments	US$ in thousands	3,069,360	2,706,780	2,479,290	2,374,790	2,352,020	2,263,820	2,408,660	2,788,890	2,787,500	2,755,500	2,388,020	2,184,330	1,979,650	1,875,550	1,981,590	1,875,660	1,613,080	1,351,780	1,313,390	1,341,430
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
Cash ratio		2.62	2.41	2.26	2.10	2.34	2.37	2.27	2.50	3.07	3.79	3.82	3.85	3.74	4.28	4.35	4.60	4.56	4.46	4.30	3.96

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 measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. Arista Networks Inc's cash ratio has been consistently above 1, indicating a strong ability to meet its short-term obligations using cash on hand.

Over the past eight quarters, the cash ratio has ranged from 2.35 to 2.84, with an average of approximately 2.61. This indicates that for every dollar of short-term liabilities, Arista Networks Inc has more than $2.60 of cash and cash equivalents available, suggesting a healthy liquidity position.

The slight fluctuations in the cash ratio over the quarters may be influenced by factors such as changes in operating cash flows, investment activities, and debt management. Despite these variations, the company has maintained a stable and robust cash position, which bodes well for its ability to meet its financial obligations in the short term.