Arista Networks (ANET)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 61.95% | 60.76% | 60.18% | 60.27% | 61.07% | 61.82% | 62.77% | 63.64% | 63.80% | 63.95% | 63.87% | 63.72% | 63.94% | 64.08% | 64.00% | 64.12% | 63.95% | 63.58% | 63.81% | 63.84% |
| Operating profit margin | 38.52% | 37.29% | 36.12% | 35.71% | 34.86% | 33.69% | 32.55% | 31.56% | 31.37% | 30.79% | 30.76% | 30.72% | 30.19% | 30.66% | 31.71% | 32.49% | 33.37% | 33.50% | 32.83% | 14.47% |
| Pretax margin | 41.33% | 39.56% | 37.87% | 36.43% | 36.10% | 34.69% | 33.51% | 32.70% | 31.58% | 31.16% | 31.60% | 31.88% | 31.88% | 32.67% | 33.94% | 34.89% | 35.70% | 35.54% | 34.51% | 15.51% |
| Net profit margin | 35.62% | 33.97% | 32.48% | 31.24% | 30.87% | 29.63% | 29.55% | 29.54% | 28.52% | 28.30% | 27.72% | 27.48% | 27.38% | 32.06% | 33.09% | 34.03% | 35.61% | 31.30% | 30.87% | 16.92% |
Arista Networks Inc has shown consistent profitability over the past eight quarters based on its profitability ratios. The gross profit margin has been relatively stable between 60.18% and 61.95% during this period, indicating the company's ability to efficiently manage its production costs.
The operating profit margin has also been on an upward trend, increasing from 31.56% in Q1 2022 to 38.52% in Q4 2023. This shows that Arista Networks has been effectively controlling its operating expenses and improving its operational efficiency.
Furthermore, the pretax margin and net profit margin have demonstrated steady growth, reflecting the company's overall profitability. The pretax margin has increased from 32.70% in Q1 2022 to 41.33% in Q4 2023, while the net profit margin has risen from 29.54% to 35.62% over the same period.
Overall, Arista Networks Inc's profitability ratios indicate strong financial performance and efficient management of its operations, leading to consistent growth in profits over the analyzed period.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 20.98% | 20.96% | 20.88% | 20.11% | 19.96% | 18.90% | 17.77% | 15.27% | 14.66% | 14.43% | 13.99% | 13.82% | 13.39% | 16.19% | 17.36% | 19.39% | 20.54% | 21.26% | 21.19% | 11.54% |
| Return on total capital | 31.27% | 32.07% | 32.45% | 32.53% | 31.26% | 30.19% | 28.46% | 23.99% | 23.24% | 22.08% | 21.87% | 21.91% | 21.07% | 22.08% | 24.38% | 27.87% | 29.40% | 32.92% | 32.33% | 14.77% |
| Return on equity (ROE) | 28.91% | 29.22% | 29.18% | 28.46% | 27.68% | 26.56% | 25.84% | 22.46% | 21.13% | 20.30% | 19.70% | 19.60% | 19.11% | 23.10% | 24.79% | 27.99% | 29.70% | 28.97% | 28.87% | 16.02% |
Arista Networks Inc has consistently shown strong profitability performance over the quarters based on the profitability ratios analyzed.
The Operating return on assets (Operating ROA) has been increasing steadily from 16.31% in Q1 2022 to 22.69% in Q4 2023, indicating that the company is efficient in generating profits from its assets through its operations.
Similarly, the Return on assets (ROA) has also shown an upward trend, from 15.27% in Q1 2022 to 20.98% in Q4 2023, demonstrating the company's ability to generate profits from its total assets.
The Return on total capital has consistently remained above 30% over the quarters, ranging from 31.26% to 32.53% in Q4 2022 to Q4 2023, which indicates that Arista Networks is highly effective in generating returns for both debt and equity holders.
Moreover, the Return on equity (ROE) has also demonstrated a positive trend, increasing from 22.46% in Q1 2022 to 28.91% in Q4 2023, reflecting the company's ability to generate profits for its shareholders.
Overall, the profitability ratios of Arista Networks Inc suggest that the company is efficiently utilizing its assets, capital, and equity to generate strong returns for its stakeholders.