Balance Sheet: Liabilities and Stockholders’ Equity
The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.
Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.
Arista Networks Inc., consolidated balance sheet: liabilities and stockholders’ equity
US$ in thousands
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 company’s liabilities and stockholders’ equity demonstrate significant growth over the five-year period. Total liabilities increased substantially, while stockholders’ equity also experienced considerable expansion, resulting in a corresponding increase in total liabilities and stockholders’ equity.
- Current Liabilities
- Current liabilities exhibited a consistent upward trend, more than quadrupling from US$1,109,829 thousand in 2021 to US$5,376,500 thousand in 2025. This growth was primarily driven by increases in deferred revenue, which rose dramatically from US$593,578 thousand to US$4,002,600 thousand over the same period. Accounts payable and accrued liabilities also contributed to this increase, though to a lesser extent. Other current liabilities also showed a steady increase.
- Long-Term Liabilities
- Long-term liabilities also increased over the period, though not as rapidly as current liabilities. They grew from US$646,000 thousand in 2021 to US$1,701,600 thousand in 2025. Deferred revenue, non-current, was a significant contributor to this growth, increasing from US$335,734 thousand to US$1,369,800 thousand. Other long-term liabilities showed a more moderate increase.
- Stockholders’ Equity
- Stockholders’ equity experienced substantial growth, more than tripling from US$3,978,600 thousand in 2021 to US$12,370,500 thousand in 2025. Retained earnings were the primary driver of this increase, rising from US$2,456,823 thousand to US$9,446,600 thousand. Additional paid-in capital also contributed significantly, increasing from US$1,530,046 thousand to US$2,911,800 thousand. Accumulated other comprehensive income (loss) fluctuated, moving from a loss of US$8,300 thousand to a gain of US$12,000 thousand. Common stock remained relatively stable, with a slight increase in 2024 before decreasing slightly in 2025.
- Total Liabilities and Stockholders’ Equity
- The combined value of total liabilities and stockholders’ equity increased significantly, growing from US$5,734,429 thousand in 2021 to US$19,448,600 thousand in 2025. This reflects the substantial growth in both liabilities and equity over the observed period.
The significant increase in deferred revenue, both current and non-current, warrants further investigation to understand the nature and timing of these obligations. The substantial growth in retained earnings suggests strong profitability and/or significant reinvestment of earnings. The overall trend indicates a growing company with increasing financial obligations and a strengthening equity base.
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