Arista Networks (ANET)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	2,944,620	2,257,250	1,527,110	924,739	699,684
Total assets	US$ in thousands	14,043,900	9,956,640	6,775,410	5,734,430	4,738,920
Operating ROA		20.97%	22.67%	22.54%	16.13%	14.76%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $2,944,620K ÷ $14,043,900K
= 20.97%

Operating ROA is a key financial performance indicator that measures a company's ability to generate operating income relative to its total assets. In the case of Arista Networks, the operating ROA has shown a positive trend over the past five years.

Starting at 14.76% on December 31, 2020, the operating ROA increased to 16.13% by December 31, 2021. The trend continued upward with significant growth, reaching 22.54% on December 31, 2022, and further increasing to 22.67% by December 31, 2023. However, in the most recent year, the operating ROA decreased slightly to 20.97% as of December 31, 2024.

Overall, Arista Networks has demonstrated a strong ability to generate operating income relative to its asset base, with a generally positive trend in operating ROA over the five-year period. The company's ability to efficiently utilize its assets for operating activities has improved, although there was a slight decline in the most recent year.