Stock Analysis on Net

Arista Networks Inc. (NYSE:ANET)

$24.99

Current Ratio
since 2014

Microsoft Excel

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Calculation

Arista Networks Inc., current ratio, long-term trends, calculation

Microsoft Excel

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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

1 US$ in thousands


The current ratio exhibited fluctuations over the analyzed period, spanning from 2014 to 2025. Initially, the ratio demonstrated a decline before stabilizing and then increasing, followed by a recent decrease.

Initial Decline (2014-2016)
From 2014 to 2016, the current ratio decreased from 4.71 to 3.32. This decline suggests a proportionally faster increase in current liabilities compared to current assets during this timeframe. While still above 3.0, the decreasing trend could indicate a potential weakening in short-term liquidity.
Stabilization and Increase (2016-2019)
Following the decline, the current ratio stabilized and then increased significantly, reaching 5.81 in 2019. This improvement indicates that current assets grew at a faster rate than current liabilities, strengthening the company’s ability to meet its short-term obligations. The ratio remained above 4.0 throughout this period.
Fluctuation and Recent Decrease (2019-2025)
From 2019 to 2021, the current ratio fluctuated between 4.99 and 4.34, indicating a period of relative stability with minor variations. In 2022 and 2023, the ratio remained relatively stable around 4.3. However, a notable decrease to 3.05 is observed in 2025. This recent decline suggests a substantial increase in current liabilities relative to current assets, potentially raising concerns about short-term liquidity.
Overall Trend
The overall trend reveals a cyclical pattern. The company experienced a period of declining liquidity, followed by a period of improvement, and then a recent downturn. The magnitude of the decrease in 2025 warrants further investigation to determine the underlying causes and potential implications for the company’s financial health.

The substantial growth in both current assets and current liabilities over the entire period is evident. However, the recent shift in the relationship between these two components, as reflected in the declining current ratio, requires attention.


Comparison to Competitors

Arista Networks Inc., current ratio, long-term trends, comparison to competitors

Microsoft Excel

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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).


Comparison to Sector (Technology Hardware & Equipment)

Arista Networks Inc., current ratio, long-term trends, comparison to sector (technology hardware & equipment)

Microsoft Excel

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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).


Comparison to Industry (Information Technology)

Arista Networks Inc., current ratio, long-term trends, comparison to industry (information technology)

Microsoft Excel

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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).