Financial statement analysis and common stock valuation

Analysis of Profitability Ratios

Measures the income of Arista Networks Inc. relative to its revenues and invested capital.

• Profitability Ratios (Summary)
• Gross Profit Margin
• Operating Profit Margin
• Net Profit Margin
• Return on Equity (ROE)
• Return on Assets (ROA)

Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of Arista Networks Inc. during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Common-Size Balance Sheet: Assets

Assets components shown as percentage of total assets.

Aggregate Accruals

Financial reporting quality relates to the accuracy with which Arista Networks Inc. reported financial statements reflect its operating performance and to their usefulness for forecasting future cash flows.
Aggregate accruals deriving measures of the accrual component of Arista Networks Inc. earnings.

• Balance-Sheet-Based Accruals Ratio
• Cash-Flow-Statement-Based Accruals Ratio

Analysis of Long-term (Investment) Activity Ratios
Quarterly Data

Measures how efficiently Arista Networks Inc. generates revenues from its investments in fixed or total assets.

• Long-term Activity Ratios (Summary)
• Net Fixed Asset Turnover
• Total Asset Turnover
• Equity Turnover

Common-Size Income Statement

Income statement components (revenues and expenses) shown as percentage of total sales.

Balance Sheet: Assets

The assets reports major classes and amounts of resources owned or controlled by Arista Networks Inc..

Cash Flow Statement

The cash flow statement provides information about Arista Networks Inc. cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on Arista Networks Inc. balance sheet.

Enterprise Value to FCFF (EV/FCFF)

Free cash flow to the firm is the cash flow available to the Arista Networks Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.

• Free Cash Flow to The Firm (FCFF)
• Interest Paid, Net of Tax
• EV to FCFF Ratio, Current
• EV to FCFF Ratio, Historical

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data

Liabilities and stockholders’ equity components shown as percentage of total liabilities and stockholders’ equity.

Analysis of Short-term (Operating) Activity Ratios

Evaluates revenues and output generated by the Arista Networks Inc. assets. Operating performance ratios describe the relationship between the Arista Networks Inc. level of operations and the assets needed to sustain operating activities.

• Short-term Activity Ratios (Summary)
• Inventory Turnover
• Receivables Turnover
• Payables Turnover
• Working Capital Turnover
• Average Inventory Processing Period
• Average Receivable Collection Period
• Operating Cycle
• Average Payables Payment Period
• Cash Conversion Cycle

Common Stock Valuation Ratios
Quarterly Data

Relative valuation technique determine the value of Arista Networks Inc. by comparing it to similar entities (like industry or sector) on the basis of several relative ratios that compare its stock price to relevant variables that affect the stock value, such as earnings, book value, and sales.

• Historical Valuation Ratios (Summary)
• Price to Earnings (P/E)
• Price to Operating Profit (P/OP)
• Price to Sales (P/S)
• Price to Book Value (P/BV)