Arista Networks (ANET)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	14,043,900	9,956,640	6,775,410	5,734,430	4,738,920
Total stockholders’ equity	US$ in thousands	9,994,810	7,219,060	4,885,820	3,978,600	3,320,290
Financial leverage ratio		1.41	1.38	1.39	1.44	1.43

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,043,900K ÷ $9,994,810K
= 1.41

The financial leverage ratio for Arista Networks has been relatively stable over the five-year period from December 31, 2020, to December 31, 2024. The ratio ranges from 1.38 to 1.44, indicating that the company's level of debt compared to its equity has been consistent. A financial leverage ratio around 1.4 suggests that Arista Networks relies more on equity financing rather than debt to support its operations and growth. The slight fluctuations in the ratio over the years may reflect changes in the company's capital structure or financial strategies. Overall, the stable nature of the financial leverage ratio suggests that Arista Networks has maintained a balanced approach to managing its debt and equity levels.