Arista Networks (ANET)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	9,946,810	6,775,410	5,734,430	4,738,920	4,185,290
Operating ROA		22.69%	22.54%	16.13%	14.76%	19.25%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $2,257,250K ÷ $9,946,810K
= 22.69%

Arista Networks Inc's operating return on assets (operating ROA) has shown a positive trend over the past five years. The company's operating ROA increased from 19.25% in 2019 to 22.69% in 2023, indicating an improvement in the efficiency of utilizing its assets to generate operating income.

The consistent increase in operating ROA suggests that Arista Networks Inc has been effectively managing its assets to generate operating profits. This could be attributed to the company's ability to optimize its asset utilization and generate higher operating income relative to its total assets.

The steady improvement in operating ROA over the years reflects positively on Arista Networks Inc's operational efficiency and profitability. It indicates that the company is generating solid returns from its assets, which is a key indicator of its financial health and sustainable performance.