Arista Networks (ANET)

Quick 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
Cash	US$ in thousands	2,762,360	3,175,140	2,429,030	2,092,100	1,938,610	1,748,820	1,261,840	956,341	671,707	716,253	493,246	635,025	620,813	630,982	893,688	843,336	893,219	970,349	800,182	761,333
Short-term investments	US$ in thousands	5,541,120	4,253,250	3,844,920	3,357,600	3,069,360	2,706,780	2,479,290	2,374,790	2,352,020	2,263,820	2,408,660	2,788,890	2,787,500	2,755,500	2,388,020	2,184,330	1,979,650	1,875,550	1,981,590	1,875,660
Receivables	US$ in thousands	1,140,480	1,130,900	1,226,800	1,090,040	1,024,570	833,374	779,726	862,875	923,096	651,512	585,786	648,606	516,509	395,590	364,214	380,466	389,540	300,217	383,225	352,159
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
Quick ratio		3.46	3.52	3.47	3.67	3.14	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

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 gradual decline over the last few years. Starting at a robust 5.22 in March 2020, the quick ratio has steadily decreased to 3.46 by December 2024. This downward trend indicates that the company may be facing challenges in converting its current assets into cash quickly to meet its short-term obligations. A quick ratio above 1 is generally considered healthy, as it suggests that a company has enough liquid assets to cover its current liabilities. While Arista Networks' quick ratio has remained above 2 in recent periods, the decreasing trend warrants monitoring to ensure the company's liquidity position remains stable in the future.