Arista Networks (ANET)

Operating 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
Operating income (ttm)	US$ in thousands	2,257,249	2,086,254	1,900,906	1,733,697	1,527,106	1,323,975	1,139,922	996,434	924,739	853,589	808,690	756,314	699,684	681,035	721,246	761,094	805,774	823,427	775,591	328,951
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
Operating profit margin		38.52%	37.29%	36.12%	35.71%	34.86%	33.69%	32.55%	31.56%	31.37%	30.79%	30.76%	30.72%	30.19%	30.66%	31.71%	32.49%	33.37%	33.50%	32.83%	14.47%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $2,257,249K ÷ $5,860,170K
= 38.52%

The operating profit margin of Arista Networks Inc has shown a consistent upward trend over the past eight quarters. The company's operating profit margin has increased steadily from 31.56% in Q1 2022 to 38.52% in Q4 2023, reflecting a continuous improvement in the efficiency of its operations and cost management.

This progressive increase in operating profit margin indicates that Arista Networks Inc has been able to effectively control its operating expenses relative to its revenue generation. The rising trend suggests that the company has been successful in enhancing its operational efficiency and profitability over time.

Overall, the improving operating profit margin of Arista Networks Inc demonstrates its ability to generate more profit from each dollar of sales, which could be a positive signal for investors and stakeholders regarding the financial health and performance of the company.