Arista Networks (ANET)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $7,219,060K)
= 0.00
The debt-to-capital ratio of Arista Networks Inc has consistently been 0.00 over the past five years. This indicates that the company has not used any debt to finance its operations relative to its total capital. A debt-to-capital ratio of 0.00 signifies that the company's capital structure relies entirely on equity rather than debt, indicating a low financial risk associated with debt obligations. Investors and creditors may view a low debt-to-capital ratio favorably as it implies that the company is not highly leveraged and has a strong ability to meet its financial obligations. Furthermore, a consistent 0.00 debt-to-capital ratio suggests that Arista Networks Inc has maintained a conservative approach to financial management and has prioritized financial stability and solvency in its operations.
Peer comparison
Dec 31, 2023