Arista Networks (ANET)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	2,762,360	1,938,610	671,707	620,813	893,219
Short-term investments	US$ in thousands	5,541,120	3,069,360	2,352,020	2,787,500	1,979,650
Receivables	US$ in thousands	1,140,480	1,024,570	923,096	516,509	389,540
Total current liabilities	US$ in thousands	2,732,220	1,919,440	1,293,530	1,109,830	768,243
Quick ratio		3.46	3.14	3.05	3.54	4.25

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,762,360K + $5,541,120K + $1,140,480K) ÷ $2,732,220K
= 3.46

The quick ratio of Arista Networks has shown a consistent and healthy trend over the past five years, ranging from 3.05 to 4.25. This indicates that the company has a strong ability to meet its short-term obligations with its most liquid assets, such as cash and marketable securities. A quick ratio above 1 suggests that Arista Networks is well-positioned to cover its current liabilities without relying heavily on inventory or other less liquid assets. Despite some minor fluctuations, the quick ratio remains at a level that reflects the company's sound financial position and liquidity management.