Stock Analysis on Net

Arista Networks Inc. (NYSE:ANET)

$24.99

Return on Equity (ROE)
since 2014

Microsoft Excel

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Calculation

Arista Networks Inc., ROE, long-term trends, calculation

Microsoft Excel

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


The net income demonstrates a consistently strong upward trajectory over the examined period. Beginning at $86,850 thousand in 2014, net income experiences significant growth with notable jumps, particularly in 2017 and from 2021 onwards. The increase peaks in 2024 at $2,852,054 thousand, indicating robust profitability expansion.

Stockholders’ equity also shows a steady increase across the years. Starting at $555,658 thousand in 2014, equity grows gradually and maintains this growth each year, reaching nearly $10 billion by 2024. This trend suggests a solid strengthening of the company’s financial base and retained earnings over time.

Return on equity (ROE) reveals some variability but overall exhibits a positive trend with an increase in efficiency at generating profits from the equity base. Initial values are around 15-16% from 2014 to 2016, then ROE peaks significantly at 25.46% in 2017. After a dip in 2018, it escalates sharply from 2019 onwards, stabilizing in the high 20% range by 2023 and 2024. This indicates an improved capacity to leverage shareholders’ investment for profit generation during the latter part of the period.

Net Income
Consistent growth with notable surges in 2017 and post-2021, peaking at over $2.8 billion in 2024.
Stockholders’ Equity
Continuous increase, showing a strong financial foundation and accumulation of shareholder funds, nearly doubling from 2017 to 2024.
Return on Equity (ROE)
Variable with an overall upward trend; significant peak in 2017, followed by a rise to nearly 29% by 2023 and 2024, indicating enhanced profitability relative to equity.

Comparison to Competitors

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

Microsoft Excel

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., ROE, long-term trends, comparison to sector (technology hardware & equipment)

Microsoft Excel

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., ROE, long-term trends, comparison to industry (information technology)

Microsoft Excel

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).