Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Income Statement
- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2014
- Current Ratio since 2014
- Price to Earnings (P/E) since 2014
- Price to Sales (P/S) since 2014
- Analysis of Revenues
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Long-term Activity Ratios (Summary)
Arista Networks Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibits considerable volatility with a generally declining trend over the analyzed periods. Starting at a high level of 75.84, the ratio initially falls sharply to 36.78 and stays in the same lower range around the 30 to 40 mark through late 2021 and early 2022. From mid-2022, there is a notable upward trend, peaking at 71.08 in September 2024. However, in the final periods, the ratio declines again, ending at 52.21 by June 2025. This pattern suggests fluctuations in the efficiency with which the company utilizes its fixed assets to generate revenue, possibly reflecting changes in investment levels or asset aging.
- Total Asset Turnover
- The total asset turnover ratio remains relatively stable in a narrow band between 0.48 and 0.65 over the entire timeline. The ratio shows a mild increasing trend from 0.5 in early 2021 to a peak around 0.65 in late 2022, indicating some improvement in overall asset utilization during that time. However, from early 2023 onwards, the ratio experiences a gradual downward shift, declining to approximately 0.48 by mid-2025. This indicates a moderate reduction in the efficiency with which total assets are used to generate sales.
- Equity Turnover
- The equity turnover ratio demonstrates a pattern of gradual increase from 0.71 in early 2021 to 0.9 by late 2022, reflecting an improvement in generating revenue from shareholders' equity. Following this, there is a steady decline to around 0.7 by mid-2025. This suggests that after a period of increasing efficiency in using equity to produce sales, the company experiences a diminishing return on equity input in the later periods.
Net Fixed Asset Turnover
Arista Networks Inc., net fixed asset turnover calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | ||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Net fixed asset turnover
= (RevenueQ2 2025
+ RevenueQ1 2025
+ RevenueQ4 2024
+ RevenueQ3 2024)
÷ Property and equipment, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Revenue Trend
- Revenue demonstrates a consistent upward trajectory over the observed periods, increasing from approximately $667.6 million at the end of Q1 2021 to $2.2048 billion by Q2 2025. The growth appears steady and relatively accelerated post Q1 2022, reflecting an expanding sales base or enhanced market penetration. Notably, quarterly revenue increments gradually rise, indicating sustained demand or successful business development initiatives.
- Property and Equipment (Net) Trend
- The net book value of property and equipment shows initial volatility, with a significant jump between Q2 and Q3 2021, rising from approximately $32.4 million to $75.4 million, likely due to substantial capital investments or acquisitions. Following this surge, the asset base incrementally increases with some fluctuations, peaking toward the later periods at $152.3 million by Q2 2025. This pattern suggests ongoing investment in fixed assets to support business operations and growth.
- Net Fixed Asset Turnover Ratio Analysis
- The net fixed asset turnover ratio displays a sharp decline in early periods, dropping from above 75 in Q1 2021 to around 36 by Q3 2021, coinciding with the sharp increase in property and equipment. This suggests that asset growth temporarily outpaced revenue growth, reducing turnover efficiency. However, from late 2021 onwards, the ratio gradually improves, climbing back above 70 by Q3 2024, reflecting more efficient utilization of fixed assets relative to revenue generation. A slight decline occurs again in 2025, ending near 52 in Q2 2025, potentially signaling increased asset base expansion that may temporarily outstrip revenue growth.
- Overall Insights
- The data portrays a company experiencing strong revenue growth supported by recurring investments in fixed assets. The initial scaling of the asset base impacted asset turnover negatively, but operational efficiency improved over time as revenue growth accelerated more rapidly than asset accumulation. Recent trends imply continued capital investment, which may affect turnover ratios short term but could support long-term expansion and capacity. Monitoring the balance between asset growth and revenue is recommended to ensure asset utilization remains efficient.
Total Asset Turnover
Arista Networks Inc., total asset turnover calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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. | ||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Total asset turnover
= (RevenueQ2 2025
+ RevenueQ1 2025
+ RevenueQ4 2024
+ RevenueQ3 2024)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- Revenue has demonstrated a consistent upward trajectory over the analyzed periods, increasing from approximately $667.6 million in the first quarter of 2021 to an estimated $2.2 billion by the second quarter of 2025. This steady growth reflects robust sales performance and potentially expanding market presence or product uptake. Notably, the acceleration in revenue appears more pronounced from mid-2022 onwards, signaling heightened business momentum during this period.
- Total Assets Dynamics
- Total assets have similarly expanded over the same timeframe, rising from about $4.89 billion early in 2021 to $16.53 billion by mid-2025. Despite some fluctuations and a minor contraction around mid-2022, asset accumulation has been significant. This growth likely supports the increasing scale of operations and investment in infrastructure or capabilities, aligning with the observed revenue growth.
- Total Asset Turnover Analysis
- The total asset turnover ratio, which measures how efficiently assets generate revenue, started at 0.5 in early 2021 and peaked near 0.65 by late 2021 and early 2022. This increase indicates improved asset utilization during that interval. However, following this peak, the ratio exhibits a gradual decline, settling at approximately 0.48 by mid-2025. The downward trend suggests that asset growth has outpaced revenue increases in later periods, indicating a reduction in asset efficiency over time.
- Overall Financial Insights
- The data illustrates strong revenue growth coupled with substantial asset base expansion. Initially, the company improved its asset efficiency but later experienced a decline in this metric, possibly due to significant capital investments or slower revenue scaling relative to asset increases. Monitoring asset utilization closely will be essential to ensure sustainable operational efficiency as the company continues to grow.
Equity Turnover
Arista Networks Inc., equity turnover calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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. | ||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Equity turnover
= (RevenueQ2 2025
+ RevenueQ1 2025
+ RevenueQ4 2024
+ RevenueQ3 2024)
÷ Stockholders’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Revenue Trend
- Revenue shows a consistent upward trajectory throughout the periods analyzed, rising from $667.6 million in March 2021 to $2.2 billion by June 2025. Steady quarterly growth is evident, with particularly notable increases beginning in early 2022, peaking in the last quarters of 2024 and early 2025. This pattern indicates robust business expansion and increasing market demand over the four-year span.
- Stockholders’ Equity Trend
- Stockholders’ equity generally increases over the timeline, from approximately $3.45 billion in March 2021 to about $10.9 billion by June 2025. However, there is a slight decline observed between March 2022 and June 2022 before the upward trend resumes with a strong acceleration from late 2022 onward. This growth reflects accumulation of retained earnings and possibly new equity issuances, contributing to a strengthened capital base.
- Equity Turnover Ratio Analysis
- The equity turnover ratio, which measures how efficiently equity capital is used to generate revenue, initially rises from 0.71 in March 2021 to a peak of 0.91 by March 2023. After this peak, the ratio gradually declines, reaching around 0.70-0.73 in the mid-2025 periods. This suggests that while revenue has grown, the growth in equity has outpaced revenue in later periods, indicating relatively lower efficiency in utilizing equity capital or increased investment in equity without proportional immediate revenue gains.
- Integrated Financial Insights
- The simultaneous rise in both revenue and stockholders’ equity points to healthy company growth and capital base strengthening. The early increase in equity turnover ratio followed by its decline signals an initial phase of improving efficiency followed by expansion likely funded through equity growth that has not yet fully translated into proportional revenue. The consistent revenue increase, however, supports a positive outlook on operational performance. The data suggests a strategic expansion phase where capital accumulation precedes further revenue utilization and growth.