Arista Networks (ANET)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 64.13% | 64.41% | 64.01% | 62.94% | 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% |
| Operating profit margin | 42.05% | 42.11% | 41.23% | 40.01% | 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% |
| Pretax margin | 46.62% | 46.43% | 44.87% | 43.55% | 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% |
| Net profit margin | 40.73% | 40.29% | 39.01% | 37.64% | 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% |
Arista Networks has demonstrated consistency in its gross profit margin, hovering around the mid-60% range over the years, indicating efficient cost management and pricing strategies. However, there was a slight dip in the gross profit margin in recent quarters, possibly due to increased production costs or pricing pressure.
In terms of operating profit margin, Arista Networks has shown a gradual improvement from around 30% in early 2020 to over 40% by the end of 2024. This trend reflects the company's ability to control operating expenses and enhance operational efficiency.
The pretax margin also showcases a positive trajectory, increasing steadily from around 30% in 2020 to almost 50% by the end of 2024. This indicates that Arista Networks has been able to effectively manage its pre-tax profitability, possibly through enhanced revenue streams or better cost controls.
Lastly, the net profit margin of Arista Networks has seen a consistent improvement over the years, reflecting the company's ability to generate bottom-line profits relative to its revenue. The net profit margin has increased from around 27% in 2020 to over 40% by the end of 2024, showcasing Arista Networks' profitability and overall financial health.
Overall, Arista Networks has maintained healthy profitability ratios, with improvements in operating efficiency and profitability margins over the years, signaling strong financial performance and effective management strategies.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 20.97% | 21.68% | 22.39% | 23.06% | 22.67% | 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% |
| Return on assets (ROA) | 20.31% | 20.74% | 21.18% | 21.69% | 20.96% | 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% |
| Return on total capital | 29.46% | 30.12% | 30.87% | 30.94% | 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% |
| Return on equity (ROE) | 28.54% | 28.82% | 29.20% | 29.11% | 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% |
Arista Networks has exhibited strong profitability over the past few years based on the provided financial ratios.
- Operating return on assets (Operating ROA) has shown a consistent increase from 18.51% in March 2020 to 22.67% in December 2023, with a slight dip to 20.97% in December 2024. This indicates that the company has been effectively generating profits from its operations relative to its total assets.
- Return on assets (ROA) has also depicted a positive trend, rising steadily from 19.39% in March 2020 to 20.31% in December 2024. This metric suggests that Arista Networks has been efficient in utilizing its assets to generate earnings for its stakeholders.
- Return on total capital has shown robust growth, climbing from 27.87% in March 2020 to 29.46% in December 2024. This indicates that the company has been successful in generating returns for both equity and debt holders on the total capital employed.
- Return on equity (ROE) has demonstrated a similar upward trajectory, increasing from 27.99% in March 2020 to 28.54% in December 2024. This ratio reflects the company's ability to generate profits from the shareholders' equity investment.
Overall, Arista Networks has exhibited consistent and strong profitability performance over the analyzed period, reflecting efficient use of its assets and capital to generate returns for its investors.