Arista Networks (ANET)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	2,852,050	2,087,320	1,352,450	840,854	634,557
Revenue	US$ in thousands	7,003,150	5,860,170	4,381,310	2,948,040	2,321,810
Net profit margin		40.73%	35.62%	30.87%	28.52%	27.33%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $2,852,050K ÷ $7,003,150K
= 40.73%

Based on the data provided, Arista Networks has demonstrated a consistent improvement in its net profit margin over the years, reflecting strong operational efficiency and profitability. The net profit margin increased from 27.33% in December 31, 2020, to 40.73% by December 31, 2024. This upward trend indicates that Arista Networks has been effectively controlling its costs and generating higher profits from its revenue. The significant growth in net profit margin suggests the company's ability to translate its sales into increased bottom-line earnings. Overall, the improving net profit margin is a positive indicator of Arista Networks' financial performance and sustainable profitability over the years.