Arista Networks (ANET)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	4,491,300	4,259,536	4,040,235	3,827,154	3,630,281	3,399,661	3,167,222	2,926,358	2,675,696	2,429,804	2,198,439	2,009,352	1,880,779	1,772,649	1,678,996	1,568,907	1,481,886	1,423,605	1,455,917	1,502,019
Revenue (ttm)	US$ in thousands	7,003,150	6,613,150	6,311,670	6,080,190	5,860,170	5,595,280	5,262,620	4,855,590	4,381,306	3,930,215	3,502,112	3,157,541	2,948,037	2,772,060	2,628,794	2,462,045	2,317,512	2,221,576	2,274,860	2,342,611
Gross profit margin		64.13%	64.41%	64.01%	62.94%	61.95%	60.76%	60.18%	60.27%	61.07%	61.82%	62.77%	63.64%	63.80%	63.95%	63.87%	63.72%	63.94%	64.08%	64.00%	64.12%

December 31, 2024 calculation

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

Arista Networks' gross profit margin has shown a general trend of fluctuation over the periods stated. Starting from a relatively high level of 64.12% in March 2020, the gross profit margin has experienced slight decreases and increases, reaching a low of 60.18% in June 2023. However, there has been a noticeable improvement since then, with the gross profit margin gradually increasing to 64.13% by December 2024.

Overall, the gross profit margin indicates the percentage of revenue that exceeds the cost of goods sold, reflecting the company's ability to efficiently produce and sell its products. The fluctuations in Arista Networks' gross profit margin may be influenced by various factors such as changes in pricing strategies, cost of materials, competition, and overall market conditions. It is essential for stakeholders to monitor this metric to assess the company's profitability and operational efficiency over time.