Arista Networks (ANET)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,944,620 | 2,257,250 | 1,527,110 | 924,739 | 699,684 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 9,994,810 | 7,219,060 | 4,885,820 | 3,978,600 | 3,320,290 |
| Return on total capital | 29.46% | 31.27% | 31.26% | 23.24% | 21.07% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,944,620K ÷ ($—K + $9,994,810K)
= 29.46%
The return on total capital for Arista Networks has shown a positive trend over the years, increasing from 21.07% as of December 31, 2020, to 29.46% as of December 31, 2024. This indicates that the company has been effectively utilizing its capital to generate returns for its stakeholders. The steady growth in return on total capital reflects Arista Networks' ability to efficiently deploy its resources in generating profits and creating value for its investors. The notable rise in this ratio from 2020 to 2024 suggests that Arista Networks has managed to enhance its operational efficiency and profitability over the years.
Peer comparison
Dec 31, 2024