Arista Networks (ANET)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,257,250 | 1,527,110 | 924,739 | 699,684 | 805,774 |
| Revenue | US$ in thousands | 5,860,170 | 4,381,310 | 2,948,040 | 2,321,810 | 2,415,010 |
| Operating profit margin | 38.52% | 34.86% | 31.37% | 30.14% | 33.37% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $2,257,250K ÷ $5,860,170K
= 38.52%
Arista Networks Inc's operating profit margin has shown a positive trend over the past five years, indicating an improvement in the company's operational efficiency and profitability. The operating profit margin increased from 33.42% in 2019 to 38.52% in 2023, showcasing a steady growth trajectory. This upward trend suggests that Arista Networks has been effectively managing its operating expenses relative to its revenues, leading to a higher proportion of each dollar in sales translating into operating profit. Overall, the consistent improvement in the operating profit margin reflects Arista Networks' ability to generate more profits from its core business operations.
Peer comparison
Dec 31, 2023