Arista Networks (ANET)

Financial leverage ratio

		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
Total assets	US$ in thousands	14,043,900	12,846,700	11,623,200	10,550,200	9,956,640	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
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
Financial leverage ratio		1.41	1.39	1.38	1.34	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

December 31, 2024 calculation

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

The financial leverage ratio of Arista Networks has been relatively stable over the past few years, ranging between 1.34 and 1.47. This ratio indicates that Arista Networks has been utilizing a moderate level of financial leverage to support its operations and growth. A ratio above 1 implies that the company has more debt than equity in its capital structure, which could potentially magnify returns but also increase financial risk. However, it is essential to note that a financial leverage ratio should be analyzed in conjunction with other financial metrics to assess the overall financial health and risk profile of the company. Overall, the stable range of the financial leverage ratio for Arista Networks suggests a balanced approach to capital structure management.