Arista Networks (ANET)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	9,994,810	9,245,890	8,430,810	7,862,320	7,219,060	6,505,560	5,857,580	5,329,170	4,885,820	4,385,220	4,005,790	4,153,180	3,978,600	3,865,260	3,697,840	3,451,340	3,320,290	3,083,880	3,036,480	2,848,830
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%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $2,852,054K ÷ $9,994,810K
= 28.54%

Arista Networks has shown a fluctuating trend in return on equity (ROE) over the past few years. Starting at a high of 27.99% in March 2020, the ROE declined to 19.11% by December 2020. However, there was a mild recovery in the following quarters, with ROE increasing to 29.22% by September 2023. Subsequently, there was a slight decrease, with ROE settling at 28.54% by December 2024.

Overall, Arista Networks has maintained relatively healthy ROE figures, indicating the company's ability to generate profits from shareholders' equity. The upward trend in recent quarters is a positive sign, suggesting improving profitability and efficiency in utilizing equity capital. Investors may view the stable and moderately high ROE as a positive indicator of the company's financial performance and potential for growth.