Arista Networks (ANET)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	11,910,800	8,400,060	5,550,750	4,812,680	3,837,000
Total current liabilities	US$ in thousands	2,732,220	1,919,440	1,293,530	1,109,830	768,243
Current ratio		4.36	4.38	4.29	4.34	4.99

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $11,910,800K ÷ $2,732,220K
= 4.36

Based on the provided data, Arista Networks has consistently maintained a strong current ratio over the years. The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, was 4.99 as of December 31, 2020, indicating a healthy liquidity position. Despite a slight decrease to 4.34 as of December 31, 2021, the ratio remained well above the industry average, suggesting the company has ample current assets to meet its short-term obligations. The ratio stayed relatively stable around 4.29 to 4.38 from 2022 to 2024, demonstrating Arista Networks' continued ability to easily fulfill its short-term financial commitments. Overall, the consistently high current ratio signifies the company's strong liquidity position and ability to manage its short-term financial obligations effectively.