Arista Networks (ANET)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	2,944,616	2,784,878	2,602,323	2,432,812	2,257,249	2,086,254	1,900,906	1,733,697	1,527,106	1,323,975	1,139,922	996,434	924,739	853,589	808,690	756,314	699,684	681,035	740,415	794,074
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Return on total capital		29.46%	30.12%	30.87%	30.94%	31.27%	32.07%	32.45%	32.53%	31.26%	30.19%	28.46%	23.99%	23.24%	22.08%	21.87%	21.91%	21.07%	22.08%	24.38%	27.87%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,944,616K ÷ ($—K + $9,994,810K)
= 29.46%

Arista Networks' return on total capital has shown a generally positive trend over the analyzed period, starting at 27.87% in March 2020 and reaching a peak of 32.53% in March 2023 before gradually decreasing to 29.46% by the end of December 2024. The company has maintained strong returns on total capital, consistently staying above 20% throughout the period, indicating efficient utilization of both equity and debt to generate profits. Overall, the trend suggests that Arista Networks has been effectively managing its capital to generate favorable returns for its investors.