Arista Networks (ANET)

Cash ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash and cash equivalents	US$ in thousands	2,762,360	3,175,140	2,429,030	2,092,100	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
Short-term investments	US$ in thousands	5,541,120	4,253,250	3,844,920	3,357,600	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
Total current liabilities	US$ in thousands	2,732,220	2,434,370	2,161,880	1,783,060	1,919,440	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
Cash ratio		3.04	3.05	2.90	3.06	2.61	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

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 exhibited a gradual decrease from 4.60 as of March 31, 2020, to 3.04 as of December 31, 2024. The trend indicates a decline in the company's ability to cover its short-term liabilities solely with its available cash and cash equivalents over this period. Despite fluctuations in the ratio, the company has generally maintained a cash ratio above 1, indicating that it has sufficient liquid assets to meet its short-term obligations. Observing the downward trajectory, Arista Networks may need to monitor its liquidity position closely and consider strategies to improve its cash reserves relative to its current liabilities.