Arista Networks (ANET)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 3,265,030 | 2,422,030 | 1,581,800 | 930,879 | 738,863 |
| Revenue | US$ in thousands | 7,003,150 | 5,860,170 | 4,381,310 | 2,948,040 | 2,321,810 |
| Pretax margin | 46.62% | 41.33% | 36.10% | 31.58% | 31.82% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $3,265,030K ÷ $7,003,150K
= 46.62%
Based on the data provided for Arista Networks' pretax margin for the years 2020 to 2024, we observe a positive trend in the company's profitability before taxes. The pretax margin has been steadily increasing over the years, from 31.82% in 2020 to 46.62% in 2024.
This indicates that Arista Networks has been effectively managing its operating expenses and generating higher profits before accounting for taxes. The consistent improvement in the pretax margin reflects the company's ability to control costs, optimize its operations, and potentially increase its pricing power or sales volume.
Overall, the rising pretax margin trend suggests that Arista Networks has been successful in enhancing its operational efficiency and financial performance over the years, which can positively impact its overall profitability and shareholder value.
Peer comparison
Dec 31, 2024