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.
Peer comparison
Dec 31, 2024