Arista Networks (ANET)

Current 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
Total current assets	US$ in thousands	11,910,800	10,877,900	9,842,320	8,926,280	8,400,060	7,655,000	6,851,560	6,270,530	5,550,750	5,031,680	4,729,200	5,105,170	4,812,680	4,523,960	4,328,400	4,002,900	3,837,000	3,653,870	3,576,880	3,336,900
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
Current ratio		4.36	4.47	4.55	5.01	4.38	4.15	4.14	3.96	4.29	4.01	3.70	3.73	4.34	5.06	5.03	5.09	4.99	5.50	5.59	5.82

December 31, 2024 calculation

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

The current ratio of Arista Networks has shown fluctuations over the past few years. The company had a relatively strong current ratio, ranging from 5.82 to 5.50 in 2020. However, starting from December 31, 2021, the current ratio began to decline, dropping to 3.73 by March 31, 2022. This downward trend continued until June 30, 2022, reaching a low of 3.70.

There was a slight improvement in the current ratio by September 30, 2022, rising to 4.01, and it further increased to 4.29 by December 31, 2022. However, the ratio decreased again slightly to 3.96 by March 31, 2023.

From June 30, 2023, there was a gradual increase in the current ratio, climbing to 5.01 by March 31, 2024. Although there were some fluctuations in between, the ratio remained relatively stable around 4.1 to 4.5 from June 30, 2024, to December 31, 2024.

Overall, while the current ratio of Arista Networks experienced significant fluctuations, it generally remained above 3.0 throughout the period, indicating the company's ability to cover its short-term obligations with its current assets. Management should continue to monitor and manage the company's current assets and liabilities to maintain a healthy liquidity position.