Arista Networks (ANET)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Arista Networks' solvency ratios indicate a strong financial position with consistently low debt levels relative to its assets and capital.
The Debt-to-assets ratio has been consistently at 0.00 over multiple periods, indicating that the company has no debt relative to its total assets. This suggests that Arista Networks is not relying heavily on debt financing to support its operations and growth.
Similarly, the Debt-to-capital ratio has also remained at 0.00 consistently, indicating that Arista Networks has no debt in relation to its capital structure. This reflects a healthy balance between debt and equity financing, with no significant risk posed by debt obligations.
The Debt-to-equity ratio has also consistently shown 0.00, indicating that the company's equity levels far exceed its debt levels. This signifies a low financial risk and a strong capacity to absorb any potential losses.
Finally, the Financial leverage ratio, which measures the company's reliance on debt financing, has shown a decreasing trend over the periods from 1.44 to 1.41, indicating a reducing dependency on debt in the company's capital structure.
Overall, Arista Networks demonstrates a robust solvency position, with low debt levels relative to assets and capital, minimal financial risk, and a decreasing reliance on debt financing over time.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | 229.28 | 214.25 | 200.30 | 92.92 | 80.46 | 57.85 | 46.50 | 55.39 | 85.72 | 112.27 | 131.14 | 128.17 | 106.13 | 75.40 | 43.16 | 25.78 | 27.63 | 36.42 | 68.09 |
The interest coverage ratio of Arista Networks has shown variability over the analyzed period. It started at a robust level of 68.09 in March 2020, indicating the company's ability to cover its interest expenses nearly 68 times. The ratio declined gradually reaching as low as 25.78 in December 2020, signifying a decline in the company's ability to cover its interest payments from its operating profits.
However, the interest coverage ratio increased significantly in the following quarters, rising to 128.17 by December 2021, showcasing a strong recovery and improvement in the company's ability to meet its interest obligations. The trend continued to improve in the subsequent periods, with the ratio peaking at 229.28 in September 2024.
A high interest coverage ratio implies that Arista Networks is generating more than enough operating income to cover its interest expenses comfortably. This indicates financial stability and indicates that the company is at lower risk of defaulting on its debt obligations. Nonetheless, investors and creditors should monitor the trend of this ratio to ensure the company's ability to maintain its debt service obligations in the long term.