Arista Networks (ANET)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	9,946,810	9,069,040	8,186,040	7,543,070	6,775,410	6,162,010	5,824,540	6,108,190	5,734,430	5,437,350	5,208,280	4,893,730	4,738,920	4,399,370	4,335,850	4,111,840	4,185,290	3,619,820	3,441,290	3,332,440
Operating ROA		22.69%	23.00%	23.22%	22.98%	22.54%	21.49%	19.57%	16.31%	16.13%	15.70%	15.53%	15.45%	14.76%	15.48%	16.63%	18.51%	19.25%	22.75%	22.54%	9.87%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $2,257,249K ÷ $9,946,810K
= 22.69%

The operating return on assets (operating ROA) for Arista Networks Inc has shown a generally positive trend over the past eight quarters, indicating efficient and effective management of the company's assets to generate operating income. The operating ROA increased steadily from 16.31% in Q1 2022 to 23.22% in Q2 2023, reaching its peak in Q2 2023. This improvement suggests that the company has been able to enhance its operational performance and profitability relative to its asset base. The consistent upward trend in the operating ROA reflects Arista Networks Inc's ability to efficiently utilize its assets to generate operating profits. It is worth noting that the operating ROA has been consistently above 20% since Q4 2022, indicating a strong operational efficiency and profitability for the company during this period. Overall, the data suggests a healthy financial performance in terms of generating operating income relative to the assets employed by Arista Networks Inc.