Arista Networks (ANET)

Interest coverage

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	2,944,620	2,257,250	1,527,110	924,739	699,684
Interest expense	US$ in thousands	—	—	54,690	6,140	0
Interest coverage		—	—	27.92	150.61	—

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $2,944,620K ÷ $—K
= —

Interest coverage ratio is a measure of a company's ability to meet its interest obligations with its operating income. A higher ratio indicates a stronger ability to cover interest expenses.

In the case of Arista Networks, the interest coverage ratio has shown fluctuations over the years. In 2021, the interest coverage ratio was 150.61, indicating a robust ability to cover interest payments by its operating income. However, in 2022, the ratio decreased to 27.92, which could signal a decreased ability to cover interest expenses with operating income compared to the previous year.

Furthermore, the lack of data for the years 2020, 2023, and 2024 makes it difficult to assess the company's performance consistently. It would be important to monitor future interest coverage ratios to ensure that Arista Networks maintains a healthy level of coverage to meet its interest obligations.