Net Profit Margin
since 2014
Calculation
Arista Networks Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 40.73% | = | 100 | × | 2,852,054) | ÷ | 7,003,146) |
| Dec 31, 2023 | 35.62% | = | 100 | × | 2,087,321) | ÷ | 5,860,168) |
| Dec 31, 2022 | 30.87% | = | 100 | × | 1,352,446) | ÷ | 4,381,310) |
| Dec 31, 2021 | 28.52% | = | 100 | × | 840,854) | ÷ | 2,948,037) |
| Dec 31, 2020 | 27.38% | = | 100 | × | 634,557) | ÷ | 2,317,512) |
| Dec 31, 2019 | 35.67% | = | 100 | × | 859,867) | ÷ | 2,410,706) |
| Dec 31, 2018 | 15.25% | = | 100 | × | 328,115) | ÷ | 2,151,369) |
| Dec 31, 2017 | 25.71% | = | 100 | × | 423,201) | ÷ | 1,646,186) |
| Dec 31, 2016 | 16.31% | = | 100 | × | 184,189) | ÷ | 1,129,167) |
| Dec 31, 2015 | 14.46% | = | 100 | × | 121,102) | ÷ | 837,591) |
| Dec 31, 2014 | 14.87% | = | 100 | × | 86,850) | ÷ | 584,106) |
Based on: 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
Over the observed period, revenue demonstrates a clear upward trajectory, increasing consistently from 584 million US dollars in 2014 to approximately 7 billion US dollars in 2024. This indicates strong growth and expansion over the decade.
Net income shows a generally positive trend as well, beginning at around 87 million US dollars in 2014 and rising significantly to over 2.85 billion US dollars by 2024. Despite some fluctuations, such as a dip in 2018 compared to the prior year, the overall pattern reflects substantial earnings growth.
The net profit margin percentages reveal notable variability but suggest increasing profitability over time. Starting at 14.87% in 2014, it dips and peaks variously across the years, hitting a high of 35.67% in 2019 before declining somewhat and then rising steadily thereafter, reaching 40.73% by 2024. This implies improvement in operational efficiency or expense management contributing to higher proportionate earnings relative to revenue.
- Revenue Trend
- Revenue expanded steadily each year, with particularly strong growth between 2017 and 2024, more than tripling in value during this period.
- Net Income Trend
- Net income exhibited robust growth overall, with a sharp increase from 2016 onwards despite a temporary decline in 2018. The growth accelerated markedly after 2020, demonstrating enhanced profitability.
- Net Profit Margin Variations
- The net profit margin generally improved over the term, reflecting better profit conversion efficiency. After initial volatility, margins consistently rose from 2020 forward, achieving a peak in the final reported year.
In summary, the financial data indicate a company experiencing strong revenue growth coupled with improving profitability, a combination that suggests effective business expansion and efficiency gains over the decade. The upward trends in net profit margin reinforce the positive outlook on operational performance.
Comparison to Competitors
Arista Networks Inc., net profit margin, long-term trends, comparison to competitors
| Arista Networks Inc. | Apple Inc. | Cisco Systems Inc. | Dell Technologies Inc. | Super Micro Computer Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2024 | 40.73% | 23.97% | 19.18% | 3.63% | 7.69% |
| Dec 31, 2023 | 35.62% | 25.31% | 22.13% | 2.39% | 8.98% |
| Dec 31, 2022 | 30.87% | 25.31% | 22.91% | 5.50% | 5.49% |
| Dec 31, 2021 | 28.52% | 25.88% | 21.26% | 3.45% | 3.14% |
| Dec 31, 2020 | 27.38% | 20.91% | 22.75% | 5.01% | 2.52% |
| Dec 31, 2019 | 35.67% | 21.24% | 22.39% | -2.55% | 2.05% |
| Dec 31, 2018 | 15.25% | 22.41% | 0.22% | — | 1.37% |
| Dec 31, 2017 | 25.71% | 21.09% | 20.02% | — | 2.69% |
| Dec 31, 2016 | 16.31% | 21.19% | 21.81% | — | 3.25% |
| Dec 31, 2015 | 14.46% | 22.85% | 18.27% | — | 5.12% |
| Dec 31, 2014 | 14.87% | 21.61% | 16.66% | — | 3.69% |
Based on: 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., net profit margin, long-term trends, comparison to sector (technology hardware & equipment)
| Arista Networks Inc. | Technology Hardware & Equipment | |
|---|---|---|
| Dec 31, 2024 | 40.73% | 20.04% |
| Dec 31, 2023 | 35.62% | 20.66% |
| Dec 31, 2022 | 30.87% | 21.34% |
| Dec 31, 2021 | 28.52% | 21.20% |
| Dec 31, 2020 | 27.38% | 17.54% |
| Dec 31, 2019 | 35.67% | 16.03% |
| Dec 31, 2018 | 15.25% | 18.73% |
| Dec 31, 2017 | 25.71% | 20.77% |
| Dec 31, 2016 | 16.31% | 21.13% |
| Dec 31, 2015 | 14.46% | 21.91% |
| Dec 31, 2014 | 14.87% | 20.48% |
Based on: 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., net profit margin, long-term trends, comparison to industry (information technology)
| Arista Networks Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2024 | 40.73% | 20.64% |
| Dec 31, 2023 | 35.62% | 20.39% |
| Dec 31, 2022 | 30.87% | 22.45% |
| Dec 31, 2021 | 28.52% | 23.62% |
| Dec 31, 2020 | 27.38% | 19.67% |
| Dec 31, 2019 | 35.67% | 19.85% |
| Dec 31, 2018 | 15.25% | 18.57% |
| Dec 31, 2017 | 25.71% | 17.85% |
| Dec 31, 2016 | 16.31% | 17.79% |
| Dec 31, 2015 | 14.46% | 18.37% |
| Dec 31, 2014 | 14.87% | 19.38% |
Based on: 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).