Arista Networks (ANET)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	2,257,250	1,527,110	924,739	699,684	805,774
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	7,219,060	4,885,820	3,978,600	3,320,290	2,894,690
Return on total capital		31.27%	31.26%	23.24%	21.07%	27.84%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,257,250K ÷ ($—K + $7,219,060K)
= 31.27%

Arista Networks Inc has shown a consistently strong performance in terms of its return on total capital over the past five years. The company's return on total capital has been on an upward trend, increasing from 27.84% in 2019 to 31.27% in 2023. This indicates that Arista Networks has been effectively utilizing its total capital to generate profits for its stakeholders.

The average return on total capital over the five-year period is 26.94%, highlighting the company's ability to efficiently deploy its capital resources to generate returns. The steady increase in the return on total capital reflects the company's effective management of its capital structure and operational efficiency.

Overall, the consistently high return on total capital demonstrates Arista Networks Inc's strong profitability and financial strength, positioning the company well for continued success in the future.