Arista Networks (ANET)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	2,422,030	1,581,800	930,879	738,863	862,270
Revenue	US$ in thousands	5,860,170	4,381,310	2,948,040	2,321,810	2,415,010
Pretax margin		41.33%	36.10%	31.58%	31.82%	35.70%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $2,422,030K ÷ $5,860,170K
= 41.33%

Arista Networks Inc's pretax margin has shown a consistent upward trend over the past five years, increasing from 35.77% in 2019 to 41.33% in 2023. This indicates that the company has been able to effectively control its operating expenses relative to its revenue, resulting in a higher proportion of pre-tax profits. The consistent improvement in pretax margin suggests that Arista Networks has been successful in managing its costs and maximizing its profitability over the years. This positive trend reflects the company's operational efficiency and financial health.