Arista Networks (ANET)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	4,491,300	3,630,280	2,675,700	1,880,780	1,481,890
Revenue	US$ in thousands	7,003,150	5,860,170	4,381,310	2,948,040	2,321,810
Gross profit margin		64.13%	61.95%	61.07%	63.80%	63.82%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $4,491,300K ÷ $7,003,150K
= 64.13%

Analysis of Arista Networks' gross profit margin reveals fluctuations over the past five years. The margin stood at 63.82% as of December 31, 2020, and slightly decreased to 63.80% by December 31, 2021. However, there was a more noticeable decline to 61.07% by December 31, 2022, followed by a slight recovery to 61.95% by December 31, 2023. Notably, the gross profit margin improved to 64.13% by December 31, 2024, indicating a positive trend in the company's ability to generate profit from its core operations.