Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Paying user area
Try for free
Arista Networks Inc. pages available for free this week:
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Geographic Areas
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2014
- Return on Assets (ROA) since 2014
- Price to Operating Profit (P/OP) since 2014
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Arista Networks Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Long-term Activity Ratios (Summary)
Arista Networks Inc., long-term (investment) activity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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).
- Net fixed asset turnover
- The net fixed asset turnover ratio experienced a notable decline between 2020 and 2021, decreasing from 71.9 to 37.49. However, from 2021 onwards, there was a consistent improvement with values rising to 46.11 in 2022, 57.69 in 2023, and reaching 70.85 in 2024. This suggests an initial reduction in efficiency using fixed assets to generate sales followed by a gradual recovery over the subsequent years.
- Net fixed asset turnover (including operating lease, right-of-use asset)
- This adjusted metric showed a slight decrease from 21.16 in 2020 to 20.5 in 2021, followed by a continuous upward trend each year thereafter, increasing to 29.52 in 2022, then 37.21 in 2023, and 46.44 in 2024. The steady increase implies improved utilization of fixed assets when incorporating leased assets, indicating enhanced operational efficiency over time.
- Total asset turnover
- The total asset turnover ratio displayed moderate fluctuations. It increased marginally from 0.49 in 2020 to 0.51 in 2021, then notably rose to 0.65 in 2022. However, it declined to 0.59 in 2023 and further to 0.5 in 2024. This pattern indicates variability in generating revenue from total assets with a peak efficiency in 2022 followed by a decreased asset utilization in the two subsequent years.
- Equity turnover
- Equity turnover showed a positive trend from 0.7 in 2020 to 0.74 in 2021, with a sharp increase to 0.9 in 2022. Subsequently, it decreased to 0.81 in 2023 and further returned to the initial level of 0.7 in 2024. The increase up to 2022 suggests improved efficiency in using shareholders' equity to generate sales, but the decline in the following years indicates a reduction back to the early period's performance level.
Net Fixed Asset Turnover
Arista Networks Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Property and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Apple Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Technology Hardware & Equipment | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Information Technology | ||||||
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).
1 2024 Calculation
Net fixed asset turnover = Revenue ÷ Property and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- Revenue exhibits a consistent upward trajectory over the five-year period, increasing from approximately 2.32 billion US dollars in 2020 to about 7.00 billion US dollars in 2024. This represents more than a threefold growth, indicating significant expansion in the company’s sales or service delivery capabilities. The most pronounced growth increments are observed between 2021 and 2022, as well as between 2022 and 2023, where revenue increased by roughly 48.6% and 33.7%, respectively. Growth continued robustly in 2024, albeit at a reduced rate compared to prior years.
- Property and Equipment, Net
- Net property and equipment showed notable growth between 2020 and 2021, more than doubling from 32.2 million to 78.6 million US dollars, which could indicate significant capital investment during this period. Following this sharp increase, the asset base grew moderately through 2023, peaking at approximately 101.6 million US dollars. In 2024, a slight reduction in asset value is observed, descending to about 98.8 million US dollars, perhaps reflecting asset depreciation or disposals.
- Net Fixed Asset Turnover
- This ratio, which measures revenue generated per unit of net fixed assets, shows a U-shaped pattern. Initially, the turnover ratio drops significantly from 71.9 in 2020 to 37.49 in 2021, likely corresponding to the rapid asset base expansion outpacing revenue growth during that time. However, from 2021 onwards, the ratio steadily improves, climbing to 70.85 in 2024, nearly returning to its initial level. This recovery suggests more efficient utilization of fixed assets as revenue growth accelerates and capital expenditures stabilize or are optimized.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Arista Networks Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Property and equipment, net | ||||||
| Operating lease right-of-use assets (included in Other assets) | ||||||
| Property and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Apple Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Technology Hardware & Equipment | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Information Technology | ||||||
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).
1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenue ÷ Property and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Revenue Trend
- The revenue exhibits a consistently strong upward trajectory throughout the observed five-year period. Starting at approximately 2.32 billion US dollars in 2020, it increases to about 7 billion US dollars by 2024, more than tripling over this timeframe. The year-over-year growth is significant each year, indicating robust sales expansion and possibly successful market penetration or increased demand.
- Property and Equipment, Net
- The company’s net investment in property and equipment, which includes operating lease right-of-use assets, shows a gradual increase from 109.5 million US dollars in 2020 to a peak of around 157.5 million US dollars in 2023. However, there is a slight decline noted in 2024, with the value falling to approximately 150.8 million US dollars. This pattern suggests ongoing capital expenditure to support operations, peaking before a moderate reduction or stabilization in the latest period.
- Net Fixed Asset Turnover Ratio
- This efficiency ratio demonstrates a marked improvement year-over-year, climbing from 21.16 in 2020 to 46.44 in 2024. The increasing ratio indicates that the company is generating progressively more revenue per unit of fixed assets, inferring enhanced operational efficiency or better utilization of existing fixed assets. The growth acceleration in this ratio particularly from 2021 onwards signals a substantial improvement in asset productivity relative to revenue.
- Overall Insights
- The financial data reveals a company experiencing rapid revenue growth while only modestly increasing its fixed asset base. The improving fixed asset turnover ratio underscores effective management of asset utilization, contributing to substantial revenue gains without a proportionate increase in property and equipment investments. The slight drop in property and equipment net value in 2024 might reflect asset disposal, amortization effects, or a decrease in capital expenditure. Overall, the trends suggest strong operational scaling and improving capital efficiency over the period analyzed.
Total Asset Turnover
Arista Networks Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Apple Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Technology Hardware & Equipment | ||||||
| Total Asset Turnover, Industry | ||||||
| Information Technology | ||||||
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).
1 2024 Calculation
Total asset turnover = Revenue ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the five-year period ending December 31, 2024. Revenue demonstrates a consistent upward trajectory, increasing significantly from approximately 2.32 billion US dollars in 2020 to about 7.00 billion US dollars in 2024. This indicates strong top-line growth, with the most pronounced increase occurring between 2021 and 2023, followed by continued robust expansion into 2024.
Total assets also show a marked increase throughout the period, growing from roughly 4.74 billion US dollars in 2020 to approximately 14.04 billion US dollars by the end of 2024. The asset base almost triples over these five years, suggesting substantial investment or acquisition activities alongside asset expansion to support growing operations.
The total asset turnover ratio, which measures the efficiency of asset use in generating revenue, fluctuates during this span. It starts at 0.49 in 2020, slightly improves to 0.51 in 2021, then rises more sharply to 0.65 in 2022, indicating better utilization of assets relative to revenue generation. However, this ratio decreases to 0.59 in 2023 and further to 0.50 in 2024, reflecting a decline in asset efficiency despite rising revenues. This suggests that asset growth may be outpacing revenue growth in the latter years, or that newer assets have yet to be fully leveraged to generate corresponding revenue.
Overall, while the company experiences strong revenue growth and considerable asset accumulation, there is an observable downward trend in asset turnover after peaking in 2022. This pattern might warrant further investigation into the nature of asset deployment and capital efficiency to ensure sustainable growth and effective asset utilization.
Equity Turnover
Arista Networks Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Apple Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Technology Hardware & Equipment | ||||||
| Equity Turnover, Industry | ||||||
| Information Technology | ||||||
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).
1 2024 Calculation
Equity turnover = Revenue ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- Revenue shows a consistent upward trajectory over the five-year period. Starting at approximately 2.3 billion US dollars in 2020, it increased to about 2.95 billion in 2021, followed by a substantial rise to over 4.3 billion in 2022. The growth continued with revenues reaching nearly 5.9 billion in 2023 and approximately 7 billion by the end of 2024. This steady growth reflects a strong expansion in business activity and successful revenue generation strategies year over year.
- Stockholders’ Equity Trends
- Stockholders’ equity has also demonstrated significant growth throughout the same period. Beginning at around 3.3 billion US dollars in 2020, it rose to nearly 4 billion in 2021 and then to about 4.9 billion in 2022. The equity level showed accelerated growth in the subsequent years, reaching approximately 7.2 billion in 2023 and close to 10 billion by the end of 2024. This upward movement suggests increasing retained earnings and capital investment, indicating robustness in the company’s financial foundation.
- Equity Turnover Ratio Trends
- The equity turnover ratio, measuring the efficiency in utilizing equity to generate revenue, fluctuated over the five-year span. Starting at 0.7 in 2020, it rose slightly to 0.74 in 2021 and peaked at 0.9 in 2022, indicating improved efficiency during those years. However, the ratio declined to 0.81 in 2023 and returned to 0.7 in 2024, suggesting a decrease in the relative efficiency of equity use despite the growing equity base. This pattern may indicate that while revenue and equity are increasing, the pace of revenue growth relative to equity is slowing down.
- Overall Analysis
- The combined analysis of these financial metrics reveals a company experiencing strong growth in both revenue and equity. The equity turnover ratio’s peak in 2022 followed by a decline indicates that recent growth in equity has outpaced revenue increases, potentially signaling a shift in asset utilization or investment strategy. Monitoring this ratio alongside revenue and equity trends will be important for assessing future operational efficiency and capital deployment effectiveness.