Arista Networks (ANET)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	2,852,050	2,087,320	1,352,450	840,854	634,557
Total stockholders’ equity	US$ in thousands	9,994,810	7,219,060	4,885,820	3,978,600	3,320,290
ROE		28.54%	28.91%	27.68%	21.13%	19.11%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $2,852,050K ÷ $9,994,810K
= 28.54%

Arista Networks has demonstrated a positive trend in its Return on Equity (ROE) over the past five years. The ROE increased from 19.11% in December 31, 2020, to 28.54% in December 31, 2024. This indicates that the company has been effectively utilizing its equity to generate profits for its shareholders. The consistent improvement in ROE reflects Arista Networks' ability to efficiently generate earnings from the shareholders' equity invested in the company. Overall, the increasing trend in ROE suggests that Arista Networks' management is effectively deploying the company's resources to create value for its shareholders.