Arista Networks (ANET)

Return on equity (ROE)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	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	859,867	769,497	729,126	384,606
Total stockholders’ equity	US$ in thousands	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	2,894,690	2,656,000	2,525,560	2,400,370
ROE		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%	29.70%	28.97%	28.87%	16.02%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $2,087,321K ÷ $7,219,060K
= 28.91%

Arista Networks Inc has displayed a consistent upward trend in its Return on Equity (ROE) over the recent quarters, indicating a healthy performance in utilizing its shareholders' equity to generate profits. The ROE has steadily increased from 22.46% in Q1 2022 to 28.91% in Q4 2023. This suggests that the company has been able to effectively generate earnings relative to its shareholders' investments, reflecting efficient management of assets to produce income. Overall, the improving trend in ROE signifies that Arista Networks Inc is effectively leveraging its equity to drive profitability and create value for its shareholders.