Arista Networks (ANET)

Net 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
Net income (ttm)	US$ in thousands	2,852,054	2,664,694	2,462,083	2,288,540	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
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
Net profit margin		40.73%	40.29%	39.01%	37.64%	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%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $2,852,054K ÷ $7,003,150K
= 40.73%

The net profit margin of Arista Networks has shown a generally positive trend over the reported periods, indicating the company's ability to convert a higher percentage of revenue into profit. Starting at 34.03% in March 2020, the margin slightly declined to 27.38% in December 2020 before starting to recover and increase steadily. By December 2024, the net profit margin had reached 40.73%, reflecting strong profitability and efficiency in managing costs relative to its revenue. This consistent improvement in net profit margin suggests effective cost control measures and operational efficiencies within the organization.