Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Arista Networks Inc., liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Current ratio | 4.39 | 4.29 | 4.34 | 4.99 | 5.81 | |
| Quick ratio | 3.16 | 3.05 | 3.54 | 4.25 | 5.22 | |
| Cash ratio | 2.62 | 2.34 | 3.07 | 3.74 | 4.56 |
Based on: 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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Arista Networks Inc. current ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Arista Networks Inc. quick ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Arista Networks Inc. cash ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Current Ratio
Arista Networks Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 8,390,235) | 5,550,748) | 4,812,676) | 3,836,998) | 3,471,636) | |
| Current liabilities | 1,909,606) | 1,293,531) | 1,109,829) | 768,243) | 597,074) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 4.39 | 4.29 | 4.34 | 4.99 | 5.81 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Apple Inc. | 0.99 | 0.88 | 1.07 | 1.36 | 1.54 | |
| Cisco Systems Inc. | 1.38 | 1.43 | 1.49 | 1.72 | 1.51 | |
| Super Micro Computer Inc. | 2.31 | 1.91 | 1.93 | 2.25 | 2.35 | |
| Current Ratio, Sector | ||||||
| Technology Hardware & Equipment | 1.10 | 0.99 | 1.17 | 1.46 | 1.55 | |
| Current Ratio, Industry | ||||||
| Information Technology | 1.46 | 1.44 | 1.64 | 1.85 | 1.77 | |
Based on: 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).
1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 8,390,235 ÷ 1,909,606 = 4.39
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Arista Networks Inc. current ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Quick Ratio
Arista Networks Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 1,938,606) | 671,707) | 620,813) | 893,219) | 1,111,286) | |
| Marketable securities | 3,069,362) | 2,352,022) | 2,787,502) | 1,979,649) | 1,613,082) | |
| Accounts receivable, net | 1,024,569) | 923,096) | 516,509) | 389,540) | 391,987) | |
| Total quick assets | 6,032,537) | 3,946,825) | 3,924,824) | 3,262,408) | 3,116,355) | |
| Current liabilities | 1,909,606) | 1,293,531) | 1,109,829) | 768,243) | 597,074) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 3.16 | 3.05 | 3.54 | 4.25 | 5.22 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Apple Inc. | 0.84 | 0.71 | 0.91 | 1.22 | 1.38 | |
| Cisco Systems Inc. | 1.13 | 1.16 | 1.32 | 1.58 | 1.39 | |
| Super Micro Computer Inc. | 1.16 | 0.75 | 0.72 | 0.87 | 1.06 | |
| Quick Ratio, Sector | ||||||
| Technology Hardware & Equipment | 0.92 | 0.79 | 1.00 | 1.30 | 1.40 | |
| Quick Ratio, Industry | ||||||
| Information Technology | 1.17 | 1.15 | 1.38 | 1.60 | 1.55 | |
Based on: 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).
1 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 6,032,537 ÷ 1,909,606 = 3.16
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Arista Networks Inc. quick ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Cash Ratio
Arista Networks Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 1,938,606) | 671,707) | 620,813) | 893,219) | 1,111,286) | |
| Marketable securities | 3,069,362) | 2,352,022) | 2,787,502) | 1,979,649) | 1,613,082) | |
| Total cash assets | 5,007,968) | 3,023,729) | 3,408,315) | 2,872,868) | 2,724,368) | |
| Current liabilities | 1,909,606) | 1,293,531) | 1,109,829) | 768,243) | 597,074) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 2.62 | 2.34 | 3.07 | 3.74 | 4.56 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Apple Inc. | 0.42 | 0.31 | 0.50 | 0.86 | 0.95 | |
| Cisco Systems Inc. | 0.84 | 0.75 | 0.93 | 1.16 | 1.05 | |
| Super Micro Computer Inc. | 0.32 | 0.18 | 0.24 | 0.30 | 0.41 | |
| Cash Ratio, Sector | ||||||
| Technology Hardware & Equipment | 0.52 | 0.39 | 0.59 | 0.93 | 0.99 | |
| Cash Ratio, Industry | ||||||
| Information Technology | 0.75 | 0.72 | 0.96 | 1.19 | 1.11 | |
Based on: 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).
1 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 5,007,968 ÷ 1,909,606 = 2.62
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Arista Networks Inc. cash ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |