Arista Networks Inc. (NYSE:ANET)

Total Asset Turnover

The reported total asset turnover ratio exhibits an overall increasing trend from 0.49 in 2020 to a peak of 0.65 in 2022, followed by a decline to 0.5 in 2024. The adjusted total asset turnover shows a similar trend, rising from 0.56 in 2020 to 0.72 in 2022, then slightly decreasing but remaining relatively high at 0.66 in 2024. This indicates an improvement in asset utilization until 2022, with a modest reduction thereafter.

Current Ratio

The reported current ratio decreases gradually from a high of 4.99 in 2020 to around 4.3 in the subsequent years, stabilizing near 4.36 in 2024. In contrast, the adjusted current ratio declines from 10.31 in 2020 to 8.44 by 2023, then sharply increases to 11.85 in 2024. This suggests consistent liquidity strength overall, with a notable enhancement in adjusted liquidity levels in the latest year.

Debt Ratios

Adjusted debt to equity and debt to capital ratios remain consistently low throughout the period, fluctuating marginally between 0.02 and 0.01. The absence of reported debt to equity and debt to capital values implies reliance on adjusted figures, which indicate minimal leverage and a conservative capital structure over the years.

Financial Leverage

Reported financial leverage ratios remain stable around 1.4, showing marginal decline from 1.44 in 2021 to 1.41 in 2024. Adjusted financial leverage is slightly lower, ranging narrowly from 1.14 to 1.16 before dropping to 1.11 in 2024. This stability implies a consistent use of debt relative to equity throughout the period with a slight deleveraging trend in the most recent year.

Net Profit Margin

Reported net profit margin demonstrates a strong upward trend, increasing from 27.38% in 2020 to 40.73% in 2024. The adjusted net profit margin shows more variability, with an initial rise reaching 31.36% in 2021, a decline to 26.58% in 2022, and subsequent growth to 43.85% in 2024. Overall, profitability has markedly improved over the five years, with some intermediate fluctuations in adjusted measures.

Return on Equity (ROE)

Reported ROE rises steadily from 19.11% in 2020 to approximately 28.5% in 2024. Adjusted ROE displays a similar positive trajectory, increasing from 18.67% to 32.03%. This reflects enhanced efficiency in generating shareholder returns, with adjusted ROE showing a more pronounced improvement in the latter years.

Return on Assets (ROA)

The reported ROA increases significantly from 13.39% in 2020 to just over 20% in both 2023 and 2024. The adjusted ROA starts higher at 16.33% in 2020, with steady growth throughout the period, reaching 28.84% in 2024. This suggests improved asset profitability and operational efficiency, particularly when adjustments are applied.

Revenue Trends

The revenue of the company demonstrated substantial growth over the observed five-year period. Starting at approximately 2.32 billion US dollars in 2020, revenue increased steadily each year, reaching over 7 billion US dollars by the end of 2024. This consistent upward trajectory indicates strong sales expansion and market demand.

Total Assets Evolution

Total assets showed a marked increase from about 4.74 billion US dollars in 2020 to nearly 14.04 billion US dollars in 2024. This steady growth suggests ongoing investments and asset accumulation by the company, potentially reflecting capacity expansion or acquisition of resources to support business growth.

Reported Total Asset Turnover

The reported total asset turnover ratio displayed variability over the period. It began at 0.49 in 2020, increased slightly to 0.51 in 2021 and reached a peak of 0.65 in 2022. However, the ratio declined thereafter, falling to 0.59 in 2023 and further to 0.50 in 2024. This pattern suggests that while asset efficiency improved initially, it declined in the latter years, indicating the firm's assets generated less revenue per unit by the end of the period.

Adjusted Revenue and Adjusted Total Assets

Adjusted revenue followed a similar upward pattern consistent with reported revenue, increasing from approximately 2.39 billion US dollars in 2020 to 8.29 billion US dollars in 2024. Adjusted total assets also grew steadily, from approximately 4.30 billion US dollars to 12.60 billion US dollars in the same period. These adjustments presumably account for specific accounting considerations, yet continue to reflect robust growth in revenue and asset base.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio showed a generally positive trend through most of the period. It increased from 0.56 in 2020 to a high of 0.72 in 2022, indicating improving efficiency in generating revenue from assets. Although there was a slight decline to 0.70 in 2023 and more noticeably to 0.66 in 2024, the ratio remained relatively high, suggesting the company maintained reasonable asset utilization efficiency despite growing asset values.

Overall Insights

The financial data reveals robust growth in revenue and asset base, signifying the company's expansion and capital investment efforts. While asset turnover ratios indicate initial improvements in asset efficiency, a subsequent decline suggests that asset growth outpaced revenue generation efficiency in the later years. Adjusted figures confirm these trends with similar patterns, highlighting sustained but slightly diminishing efficiency in asset use as the company scales.

The financial data exhibits several notable trends over the five-year period. Current assets show a strong upward trajectory, increasing consistently from approximately $3.8 billion at the end of 2020 to over $11.9 billion by the end of 2024. This suggests a significant expansion in the company's liquid or near-liquid resources over the timeframe.

Current liabilities also rise steadily, though at a somewhat slower pace compared to current assets, growing from about $768 million in 2020 to roughly $2.7 billion in 2024. Despite the increase in liabilities, the company maintains a relatively stable reported current ratio, which remains above 4.0 throughout the years, fluctuating slightly between 4.29 and 4.99. This indicates that the company has consistently maintained a strong ability to cover its short-term obligations with its current assets.

Examining the adjusted current liabilities, which are lower than the reported current liabilities, there is a growth trend from $372 million in 2020 to just over $1 billion in 2024. The significantly lower adjusted liabilities suggest that certain liabilities may have been excluded from this adjustment, potentially reflecting a more conservative approach to assessing short-term obligations.

Correspondingly, the adjusted current ratio, calculated using the adjusted liabilities, is substantially higher than the reported current ratio, remaining above 8.0 for most years and peaking at 11.85 in 2024. This elevated ratio highlights an exceptionally strong liquidity position when considering the adjusted figures.

Overall, the data reveals a pattern of robust growth in current assets accompanied by controlled increases in both reported and adjusted current liabilities. The consistently high ratios, both reported and adjusted, emphasize a strong liquidity position and suggest sound short-term financial health across the observed period.

Stockholders’ Equity

Stockholders’ equity exhibited a consistent upward trend from 3,320,291 thousand USD at the end of 2020 to 9,994,807 thousand USD by the end of 2024. This reflects substantial growth in the company's net worth over the five-year period, with a particularly notable acceleration from 2022 onwards.

Adjusted Total Debt

The adjusted total debt decreased gradually from 90,170 thousand USD in 2020 to 59,642 thousand USD in 2024. This indicates a steady reduction of the company’s debt burden across the evaluated timeframe.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity increased significantly, starting from 3,757,523 thousand USD in 2020 and reaching 11,345,804 thousand USD in 2024. The growth was particularly pronounced after 2022, mirroring the trend observed in the unadjusted equity figures and suggesting an expansion in the company’s equity base considering accounting adjustments.

Debt to Equity Ratios

The adjusted debt to equity ratio declined slightly over the years, from 0.02 in 2020 and 2021 down to 0.01 from 2022 through 2024. This indicates that the company’s leverage position has improved, with debt representing a very small fraction of equity in recent years, implying a low reliance on debt financing.

Overall Financial Position

Overall, the data points to a strengthening financial position characterized by robust equity growth coupled with a gradual reduction in debt levels. The low and decreasing adjusted debt-to-equity ratio highlights conservative leverage and potentially effective capital management strategies aimed at enhancing shareholder value while minimizing financial risk.

Total Capital

The total capital demonstrates a consistent upward trajectory from 3,320,291 thousand US dollars at the end of 2020 to 9,994,807 thousand US dollars by the end of 2024. This represents a more than threefold increase over the five-year period, indicating substantial growth in the company's capital base.

Adjusted Total Debt

Adjusted total debt shows a clear decreasing trend, declining from 90,170 thousand US dollars in 2020 to 59,642 thousand US dollars in 2024. This reduction suggests an improvement in the company's leverage position, with debt levels diminishing despite the significant expansion in capital.

Adjusted Total Capital

Adjusted total capital mirrors the growth pattern of total capital, rising steadily from 3,847,693 thousand US dollars in 2020 to 11,405,446 thousand US dollars in 2024. This indicates a steady increase in resources accounted for under adjusted capital measures, showing strengthened financial capacity.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio remains very low across all reported years, decreasing slightly from 0.02 in 2020 and 2021 to 0.01 from 2022 onward. This signifies a very low leverage level relative to capital, reflecting a conservative debt management approach and enhanced financial stability.

Total assets

Total assets showed a consistent and substantial increase over the five-year period, rising from approximately $4.7 billion at the end of 2020 to about $14 billion by the end of 2024. This growth indicates significant expansion in the company's asset base, with particularly notable acceleration from 2022 onward.

Stockholders’ equity

Stockholders’ equity also experienced steady growth, increasing from around $3.3 billion in 2020 to nearly $10 billion in 2024. The increase in equity is somewhat proportional to the growth in total assets, reflecting retained earnings and possibly additional equity financing contributing to the company's net worth.

Reported financial leverage

The reported financial leverage ratio remained relatively stable throughout the period, fluctuating slightly between 1.38 and 1.44. This stability suggests that the company maintained a consistent balance between debt and equity financing despite the rapid growth in asset size.

Adjusted total assets

Adjusted total assets exhibited a pattern similar to reported total assets, increasing from about $4.3 billion in 2020 to approximately $12.6 billion in 2024. The adjustments appear to reduce the asset base slightly, but the overall trend of significant asset growth remains clear.

Adjusted stockholders’ equity

Adjusted stockholders’ equity increased from roughly $3.8 billion in 2020 to $11.3 billion in 2024. The growth in adjusted equity mirrors the pattern observed in the reported equity figures, supporting the conclusion of strengthening net asset value over time.

Adjusted financial leverage

The adjusted financial leverage ratio showed minor upward movement from 1.14 to a peak of 1.16 between 2020 and 2023, followed by a slight decrease to 1.11 in 2024. This suggests a generally stable leverage position with a subtle tendency toward reduced leverage in the final year, indicating a possible strategic shift toward less reliance on external financing.

Overall observations

The company demonstrated robust growth in both total assets and equity, indicating strong operational expansion or increased capital investment over the period analyzed. Despite this growth, financial leverage ratios, whether reported or adjusted, remained relatively stable, implying prudent management of capital structure and financing risk. The slight decline in adjusted financial leverage in the final year could reflect a focus on strengthening the equity base relative to liabilities.

The financial data reveals a consistent and significant growth trajectory over the five-year period under review. Both net income and revenue show marked increases year-over-year, suggesting robust operational performance and expanding market presence.

Net Income and Revenue Growth

Net income rose from approximately 635 million USD in 2020 to nearly 2.85 billion USD in 2024, indicating a strong upward trend in profitability. Similarly, reported revenue increased from around 2.32 billion USD in 2020 to over 7 billion USD in 2024. This growth trajectory signals healthy demand and successful business scaling during the period.

Profit Margins

The reported net profit margin improved steadily from 27.38% in 2020 to 40.73% in 2024, reflecting enhanced earnings efficiency relative to revenue. This upward trend in profit margin suggests effective cost management and possibly favorable product mix or pricing strategies.

Adjusted Financial Metrics

Adjusted net income and adjusted revenue data corroborate the overall growth trend, with adjusted net income increasing from approximately 702 million USD in 2020 to over 3.63 billion USD in 2024, and adjusted revenue rising from about 2.39 billion USD to nearly 8.29 billion USD across the same period. These adjusted figures show slightly different growth dynamics but reinforce the positive performance trend.

Adjusted Net Profit Margin Dynamics

Adjusted net profit margin exhibits more variability than the reported margin. It increased from 29.32% in 2020 to 31.36% in 2021 but dipped to 26.58% in 2022. This decline suggests a period of reduced profitability efficiency on an adjusted basis, potentially due to non-recurring costs or investments. However, margins recovered substantially thereafter, reaching 43.85% by 2024, indicating strong resumed profitability and possible operational improvements.

Overall, the data reflects a company experiencing accelerating revenue and income growth with increasingly efficient profit generation by the end of the period examined. The fluctuation in adjusted net profit margin in the middle years warrants attention but does not detract from the overarching positive trends in financial performance.

The data reveals a consistent positive growth trajectory in key financial metrics over the five-year period observed. Net income shows a strong upward trend, increasing steadily from 634,557 thousand US dollars in 2020 to 2,852,054 thousand US dollars in 2024. This represents more than a fourfold increase, indicating significant profitability expansion.

Stockholders’ equity also exhibits robust growth, rising from 3,320,291 thousand US dollars in 2020 to 9,994,807 thousand US dollars in 2024. This increase reflects strengthened capital base and retained earnings accumulation, supporting the company’s expanding operations and financial stability.

Reported return on equity (ROE) trends upward from 19.11% in 2020 to a peak of 28.91% in 2023, with a slight decline to 28.54% in 2024. This suggests that the company has become more efficient in generating profits from shareholders’ equity over the years, although the marginal dip at the end indicates a stabilization or minor decrease in profitability efficiency.

Adjusted net income mirrors the growth seen in reported net income but displays higher values, rising from 701,628 thousand US dollars in 2020 to 3,634,604 thousand US dollars in 2024. This adjustment potentially accounts for non-recurring items or other financial considerations that provide a clearer picture of ongoing operational profitability.

Similarly, adjusted stockholders’ equity figures grow from 3,757,523 thousand US dollars in 2020 to 11,345,804 thousand US dollars in 2024. The adjusted equity values surpass reported equity figures each year, indicating possible revaluation or adjustments that enhance the baseline capital assessment.

Adjusted ROE follows an upward trajectory, starting at 18.67% in 2020 and accelerating to 32.03% in 2024. This improvement exceeds the growth seen in reported ROE, highlighting increased operational effectiveness and efficient capital use when considering adjustments.

Summary of Trends

There is a clear strong growth in profitability and equity over the period, with both net income and stockholders’ equity increasing substantially.

Return on equity improves significantly, especially when considering adjusted figures, signaling enhanced returns on capital investment.

The difference between reported and adjusted figures suggests that adjustments made provide a more optimistic view of the company’s financial health and performance.

The slight decline in reported ROE in 2024 may warrant attention, although adjusted ROE continues to rise, implying underlying operational strength remains intact.

The financial data reveals a consistent and robust growth trajectory over the five-year period under review. Key profitability metrics and asset bases have expanded significantly, reflecting a strengthening financial position.

Net Income

Net income has shown a substantial upward trend, rising from $634.6 million in 2020 to $2.85 billion in 2024. This indicates a strong improvement in profitability, with income more than quadrupling over the period. The most notable acceleration occurs between 2022 and 2024.

Total Assets

Total assets have increased markedly from approximately $4.74 billion in 2020 to $14.04 billion in 2024. This nearly threefold growth suggests significant investments or asset acquisitions, supporting the company’s expanded operations and growth strategy.

Reported Return on Assets (ROA)

The reported ROA exhibits improvement from 13.39% in 2020 to a peak of 20.98% in 2023, with a slight moderation to 20.31% in 2024. This upward trend indicates enhanced efficiency and profitability relative to the asset base, despite the marginal decline in the final year.

Adjusted Net Income

Adjusted net income also shows significant growth, from $701.6 million in 2020 to $3.63 billion in 2024. The adjusted figures are consistently higher than the reported net income, implying that certain non-cash or one-time items have been excluded to present a more normalized profit measure.

Adjusted Total Assets

Adjusted total assets follow a similar growth pattern, increasing from $4.30 billion in 2020 to $12.60 billion in 2024. The adjusted asset base is slightly lower than the reported total assets, likely due to the exclusion of certain intangible or non-operational assets for a refined analysis.

Adjusted ROA

Adjusted ROA presents a clear, consistent improvement from 16.33% in 2020 to 28.84% in 2024. The steady rise exceeds that of the reported ROA, highlighting increasingly effective use of assets in generating sustainable earnings beyond accounting adjustments.

Overall, the data illustrate strong financial performance with accelerating profitability supported by asset growth. The adjusted metrics highlight enhanced operational efficiency and a capacity for generating higher returns on assets, reflecting positively on management’s strategic execution and financial discipline over the period.