Arista Networks (ANET)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 3.16 | 2.86 | 2.73 | 2.65 | 3.05 | 2.89 | 2.73 | 2.97 | 3.54 | 4.23 | 4.24 | 4.33 | 4.25 | 4.73 | 4.94 | 5.22 | 5.22 | 5.28 | 4.95 | 4.46 |
| Cash ratio | 2.62 | 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 | 4.56 | 4.46 | 4.30 | 3.96 |
Arista Networks Inc has shown consistent strength in its liquidity position over the past eight quarters based on its liquidity ratios. The current ratio has remained above 3.0 in all quarters, indicating a strong ability to meet its short-term obligations with current assets. The company's current ratio peaked at 4.39 in Q4 2023, reflecting a significant cushion of current assets to cover current liabilities.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also remained robust, consistently above 2.0. This suggests that Arista Networks has a solid ability to meet its short-term liabilities without relying on selling inventory.
Moreover, the cash ratio, which specifically measures the company's ability to cover current liabilities with its cash and cash equivalents, has shown stability above 2.0 in most quarters. This indicates that Arista Networks has a sufficient level of cash on hand to cover its immediate obligations.
Overall, Arista Networks Inc's liquidity ratios demonstrate a healthy liquidity position, with a strong ability to meet short-term obligations with different levels of stringency, including current assets, quick assets, and cash levels.
See also:
Arista Networks Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 261.99 | 273.07 | 268.02 | 272.05 | 257.62 | 215.21 | 182.92 | 189.22 | 175.38 | 170.66 | 163.86 | 161.75 | 172.81 | 142.46 | 129.48 | 112.50 | 107.73 | 117.16 | 127.52 | 130.48 |
The cash conversion cycle for Arista Networks Inc has shown some fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle increased to 311.00 days compared to the previous quarter of 324.43 days. This suggests that the company took longer to convert its investments in inventory into cash receipts from customers.
Looking further back, the cash conversion cycle was relatively stable in Q2 and Q3 2023, but there was a slight increase in Q1 2023. The trend in 2022 shows a general increase in the cash conversion cycle over time, with Q4 2022 having the lowest cycle at 303.13 days.
Overall, Arista Networks Inc's cash conversion cycle has been on an upward trend since Q1 2023, indicating potential inefficiencies in managing the company's working capital. It is important for the company to closely monitor and improve its cash conversion cycle to ensure efficient use of resources and mitigate liquidity risks.