Stock Analysis on Net
Stock Analysis on Net

Arista Networks Inc. (NYSE:ANET)

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity 

Arista Networks Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Accounts payable 3.35 2.71 4.37 3.43 3.53
Accrued liabilities 2.44 3.10 4.09 4.32 3.95
Deferred revenue 20.58 12.30 9.20 9.41 10.35
Other current liabilities 1.27 1.34 1.53 1.93 1.52
Current liabilities 27.64% 19.45% 19.20% 19.09% 19.35%
Deferred revenue, non-current 7.04 7.58 5.94 5.96 5.85
Other long-term liabilities 1.71 1.80 2.28 2.84 5.41
Long-term liabilities 8.75% 9.38% 8.23% 8.80% 11.27%
Total liabilities 36.39% 28.83% 27.42% 27.89% 30.62%
Preferred stock, $0.0001 par value; no shares issued and outstanding 0.00 0.00 0.00 0.00 0.00
Common stock, $0.0001 par value 0.00 0.00 0.00 0.00 0.00
Additional paid-in capital 14.97 17.55 21.20 26.28 26.68
Retained earnings 48.57 53.71 51.41 46.33 42.84
Accumulated other comprehensive income (loss) 0.06 -0.09 -0.03 -0.50 -0.14
Stockholders’ equity 63.61% 71.17% 72.58% 72.11% 69.38%
Total liabilities and stockholders’ equity 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The composition of liabilities and stockholders’ equity exhibited several notable shifts between 2021 and 2025. Overall, total liabilities as a percentage of the total increased from 30.62% to 36.39%, while stockholders’ equity decreased from 69.38% to 63.61% over the same period.

Current Liabilities
Current liabilities demonstrated a generally stable percentage of the total, fluctuating around 19% between 2021 and 2023. However, a significant increase was observed in 2025, reaching 27.64%. This rise was primarily driven by deferred revenue, which more than doubled as a percentage of the total from 9.20% in 2023 to 20.58% in 2025. Accounts payable and accrued liabilities both decreased as a percentage of the total in 2025.
Long-Term Liabilities
Long-term liabilities decreased from 11.27% in 2021 to a low of 8.23% in 2023, before modestly increasing to 8.75% in 2025. The decrease between 2021 and 2023 was largely attributable to a reduction in other long-term liabilities. Deferred revenue, non-current, showed a consistent increase, rising from 5.85% to 7.04% over the five-year period.
Stockholders’ Equity Components
Retained earnings constituted the largest component of stockholders’ equity, consistently representing over 40% of the total. While initially increasing from 42.84% in 2021 to 51.41% in 2023, retained earnings decreased to 48.57% in 2025. Additional paid-in capital experienced a consistent decline, falling from 26.68% in 2021 to 14.97% in 2025. Accumulated other comprehensive income (loss) remained a small percentage of the total, fluctuating around zero, and becoming slightly positive in 2025.

The increasing proportion of liabilities, particularly deferred revenue, coupled with the decreasing proportion of stockholders’ equity, suggests a potential shift in the company’s financing structure. The decline in additional paid-in capital may indicate share repurchases or other capital management activities. The growth in deferred revenue could signify increased pre-sales or subscription-based revenue models.

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