Arista Networks (ANET)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	2,852,054	2,664,694	2,462,083	2,288,540	2,087,321	1,900,774	1,709,446	1,516,660	1,352,446	1,164,652	1,034,958	932,747	840,854	784,517	728,587	676,492	634,557	712,291	752,811	797,269
Total assets	US$ in thousands	14,043,900	12,846,700	11,623,200	10,550,200	9,956,640	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
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%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $2,852,054K ÷ $14,043,900K
= 20.31%

Arista Networks' return on assets (ROA) has been showing a generally positive trend over the past several quarters. From March 31, 2020, to December 31, 2024, the ROA has fluctuated between 13.39% and 21.69%.

The ROA increased steadily from 2019 to mid-2022, reaching a peak of 21.69% on March 31, 2024. This indicates the company's ability to generate higher profits relative to its total assets during this period.

However, from mid-2023 to the end of 2024, the ROA started to decline slightly, dropping to 20.31% by December 31, 2024, signaling a potential decrease in profitability relative to the assets employed.

Overall, Arista Networks has maintained a healthy ROA above 13% throughout the observed period, indicating effective asset utilization and profitability management. The slight decline in ROA towards the end of the period may warrant further investigation to understand the factors influencing the company's profitability relative to its assets.