Arista Networks (ANET)

Current 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
Total current assets	US$ in thousands	8,390,240	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	3,471,640	3,240,420	3,028,520	2,900,970
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
Current ratio		4.39	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	5.81	5.91	5.77	5.34

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $8,390,240K ÷ $1,909,610K
= 4.39

Arista Networks Inc's current ratio has exhibited a generally favorable trend over the past eight quarters, ranging from 3.70 to 4.39. An increasing current ratio signifies a strengthening liquidity position, indicating the company's ability to meet its short-term obligations with its current assets.

In the most recent quarter (Q4 2023), the current ratio stands at 4.39, the highest level in the observed period, indicating that Arista Networks Inc has $4.39 in current assets for every $1 in current liabilities. This suggests a robust liquidity position and strong short-term financial health.

The company has consistently maintained a current ratio above 3.5, reflecting a healthy liquidity position throughout the observed period. As liquidity is crucial for meeting day-to-day obligations and unexpected expenses, Arista Networks Inc appears well-equipped to manage its short-term financial commitments.

Overall, Arista Networks Inc's current ratio trend indicates sound management of working capital and suggests that the company is well-positioned to meet its short-term financial obligations effectively.