Arista Networks (ANET)

Operating 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
Operating income (ttm)	US$ in thousands	2,944,616	2,784,878	2,602,323	2,432,812	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
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
Operating profit margin		42.05%	42.11%	41.23%	40.01%	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%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $2,944,616K ÷ $7,003,150K
= 42.05%

Arista Networks has demonstrated a consistent improvement in its operating profit margin over the past few years. The operating profit margin, which measures the efficiency of the company in generating profits from its core operations, increased steadily from 32.49% as of March 31, 2020, to 42.05% as of December 31, 2024.

The company managed to maintain a relatively stable operating profit margin above 30% throughout the period, with occasional fluctuations. Notably, there was a significant jump in the margin from September 30, 2023, to December 31, 2023, followed by further increases in the subsequent quarters.

The upward trend in the operating profit margin indicates Arista Networks' ability to control its operating expenses while increasing revenue, leading to higher profitability. This consistent improvement in operating efficiency bodes well for the company's financial health and indicates effective management of operational costs and pricing strategies.