Arista Networks (ANET)

Net profit margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	2,087,321	1,900,774	1,709,446	1,516,660	1,352,446	1,164,652	1,034,958	932,747	840,854	784,517	728,587	676,492	634,557	712,291	752,811	797,269	859,867	769,497	729,126	384,606
Revenue (ttm)	US$ in thousands	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	2,415,006	2,458,186	2,362,107	2,272,951
Net profit margin		35.62%	33.97%	32.48%	31.24%	30.87%	29.63%	29.55%	29.54%	28.52%	28.30%	27.72%	27.48%	27.38%	32.06%	33.09%	34.03%	35.61%	31.30%	30.87%	16.92%

December 31, 2023 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $2,087,321K ÷ $5,860,170K
= 35.62%

The net profit margin of Arista Networks Inc has shown a consistent upward trend over the past eight quarters. Starting at 29.54% in Q1 2022, the net profit margin has steadily increased to 35.62% in Q4 2023. This indicates that the company has been effectively controlling its costs and expenses relative to its revenue, resulting in a higher percentage of profit generated from each dollar of sales. Overall, the improving trend in net profit margin reflects the company's profitability and efficiency in managing its financial performance.