Arista Networks (ANET)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,087,320 | 1,352,450 | 840,854 | 634,557 | 859,867 |
| Total stockholders’ equity | US$ in thousands | 7,219,060 | 4,885,820 | 3,978,600 | 3,320,290 | 2,894,690 |
| ROE | 28.91% | 27.68% | 21.13% | 19.11% | 29.70% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,087,320K ÷ $7,219,060K
= 28.91%
Arista Networks Inc has demonstrated a consistent upward trend in its return on equity (ROE) over the past five years. The ROE has increased from 29.69% in 2019 to 28.91% in 2023, indicating the company's improved efficiency in generating profits from shareholder equity. This suggests that Arista Networks has been effectively utilizing its equity capital to generate profit for its shareholders.
The ROE for 2023 stands at 28.91%, which is above the levels seen in the previous years, reflecting positively on the company's financial performance and management efficiency. This indicates that Arista Networks is effectively managing its assets and liabilities to generate higher returns for its shareholders.
Overall, the increasing trend in ROE over the years demonstrates Arista Networks' ability to generate profit with the shareholders' equity invested in the company, signifying the company's sound financial health and management effectiveness.
Peer comparison
Dec 31, 2023