Arista Networks (ANET)

Financial leverage ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	9,946,810	9,069,040	8,186,040	7,543,070	6,775,410	6,162,010	5,824,540	6,108,190	5,734,430	5,437,350	5,208,280	4,893,730	4,738,920	4,399,370	4,335,850	4,111,840	4,185,290	3,619,820	3,441,290	3,332,440
Total stockholders’ equity	US$ in thousands	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	2,894,690	2,656,000	2,525,560	2,400,370
Financial leverage ratio		1.38	1.39	1.40	1.42	1.39	1.41	1.45	1.47	1.44	1.41	1.41	1.42	1.43	1.43	1.43	1.44	1.45	1.36	1.36	1.39

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 been relatively stable over the past eight quarters, ranging from 1.38 to 1.47. This ratio indicates that the company relies more on debt financing rather than equity to fund its operations and growth.

The slight fluctuations in the ratio suggest that the company's level of debt in relation to its equity has remained within a moderate range. A higher financial leverage ratio typically indicates higher financial risk, as it implies a higher level of debt relative to equity in the company's capital structure.

Overall, Arista Networks Inc has maintained a consistent level of financial leverage over the past two years, suggesting a balanced approach to capital structure management. It is important for investors and stakeholders to monitor this ratio closely to assess the company's risk profile and financial stability.