Arista Networks (ANET)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,946,810 | 6,775,410 | 5,734,430 | 4,738,920 | 4,185,290 |
| Total stockholders’ equity | US$ in thousands | 7,219,060 | 4,885,820 | 3,978,600 | 3,320,290 | 2,894,690 |
| Financial leverage ratio | 1.38 | 1.39 | 1.44 | 1.43 | 1.45 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,946,810K ÷ $7,219,060K
= 1.38
The financial leverage ratio of Arista Networks Inc has shown a relatively consistent trend over the past five years, ranging from 1.38 to 1.45. The ratio indicates that the company has generally relied more on debt financing than equity financing to fund its operations and investments during this period. While the ratio has fluctuated slightly year over year, it has remained relatively stable, suggesting that Arista Networks Inc has maintained a consistent capital structure over the years. Overall, the financial leverage ratio implies that the company has a moderate level of leverage, which may indicate a certain level of financial risk but also potential for higher returns.
Peer comparison
Dec 31, 2023