Arista Networks Inc. (NYSE:ANET)

Net Fixed Asset Turnover

The net fixed asset turnover ratio demonstrates substantial fluctuations over the observed periods. Starting from 71.9 in March 2020, it increased steadily to reach a peak of 81.23 by September 2020, followed by a sharp decline to 36.78 by December 2020. Subsequently, from March 2021 onwards, the ratio exhibits a consistent upward trajectory, climbing from 37.49 to a peak of 71.08 in September 2024. However, after this peak, a slight decline is observed, dropping to 60.02 by March 2025. This pattern suggests periods of varying efficiency in utilizing fixed assets, with a strong recovery and growth phase after the significant dip in late 2020.

Total Asset Turnover

The total asset turnover ratio shows a relatively stable trend with minor fluctuations across the quarters. From 0.49 in March 2020, the ratio increased slightly to a peak of 0.65 in March 2023. After this peak, a gradual decline is noticeable, reaching 0.50 by March 2025. This indicates overall consistent asset utilization efficiency, albeit with a moderate downward trend in the latter periods, which may reflect changes in asset base or revenue generation capacity.

Equity Turnover

The equity turnover ratio reflects a gradual improvement from 0.70 in March 2020 to a high of 0.91 by March 2023. Following this, a steady decline ensues, decreasing to 0.70 by March 2025. This trend points to initially enhanced use of equity to generate sales, followed by a reduction in turnover efficiency in the equity base toward the end of the period under review.

Revenue Trends

The revenue demonstrates a consistent upward trend throughout the periods analyzed. Starting at $523,029 thousand in March 2020, it steadily increases quarter over quarter, reaching $2,004,800 thousand by March 2025. The growth appears accelerating particularly from mid-2021 onwards, with notable quarterly increments especially in the years 2022 and 2024, indicating sustained business expansion or increased market demand.

Property and Equipment, Net

The net value of property and equipment shows some fluctuations over the quarters. Beginning at $37,806 thousand in March 2020, there is an initial decline until late 2020 and early 2021, reaching a low around $32,231 thousand in December 2020. Subsequently, there is a sharp increase toward the end of 2021, peaking at $101,705 thousand in June 2023. After this peak, the values slightly fluctuate but mostly remain elevated compared to the earlier periods, with a final significant rise to $123,900 thousand in March 2025. This pattern suggests substantial capital investments or asset acquisitions made after mid-2021.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio, which measures efficiency in using fixed assets to generate revenue, shows an interesting pattern. The data begins to be available from September 2020 with a value of 71.9, increasing to a peak around 81.23 in September 2021. However, there is a sudden drop right after, falling to roughly 36.78 by December 2021. From that point onward, the ratio recovers progressively, exhibiting an upward trend reaching approximately 70.85 in September 2024 before a slight decline to 60.02 in December 2024. This indicates periods of changing asset utilization efficiency, potentially reflecting timing of asset investments and revenue growth phases, where initial investments temporarily reduce efficiency followed by improved utilization.

Overall Insights

The data indicates strong revenue growth accompanied by significant capital expenditure increases, especially from 2021 forward. While asset base expansions initially reduce asset turnover ratios, efficiency improves over time, reflecting adaptive operational management or the maturation of recent investments. This interplay suggests an aggressive growth strategy with ongoing investments in property and equipment that supports scaling revenue but temporarily impacts fixed asset efficiency metrics. The overall financial trends demonstrate a robust expansion phase with gradually improving asset productivity.

Revenue trend

Revenue shows a consistent upward trajectory over the reviewed quarters, increasing from approximately $523 million in March 2020 to about $2.0 billion by March 2025. Notable accelerations occur starting mid-2021, with quarterly revenue surpassing the $1 billion mark by June 2022 and nearly doubling within three years. This indicates strong sales growth and an expanding business scale.

Total assets trend

Total assets have grown steadily throughout the period, rising from approximately $4.11 billion in March 2020 to around $14.5 billion by March 2025. The asset base expands consistently each quarter, reflecting continued investment and asset accumulation. Some fluctuations are observable between June 2021 and September 2022, possibly indicating asset reallocation or divestments, but the overall trend remains positive.

Total asset turnover ratio

The total asset turnover ratio, which measures revenue generated per dollar of assets, shows an initial increase from 0.49 in September 2020 to a peak of 0.65 in September 2022. This suggests improving efficiency in utilizing assets to generate revenue during this timeframe. However, after reaching its peak, the ratio steadily declines toward 0.50 by March 2025, implying a decrease in asset utilization efficiency despite increasing revenue and asset growth. This may reflect a faster pace of asset accumulation compared to revenue growth or possibly more capital-intensive operations.

Overall insights

The company demonstrates robust revenue growth alongside a significant expansion of its asset base, indicating an aggressive growth and investment strategy. While asset efficiency improved until late 2022, the subsequent decline in asset turnover suggests attention may be needed to optimize asset deployment to sustain efficiency gains. The continuing revenue increase despite lower turnover ratios points to strong market demand and successful sales performance.

The financial data displays several key trends over the quarters from March 2020 through March 2025. Revenue shows a consistent upward trajectory throughout the periods, with a marked acceleration beginning around mid-2021. Initial revenue of approximately $523 million in March 2020 steadily climbs each quarter, reaching over $2 billion by March 2025. This suggests strong market demand and successful growth strategies.

Stockholders’ equity also demonstrates a positive and pronounced growth pattern. Starting at roughly $2.85 billion in March 2020, it rises steadily, with some fluctuations around mid-2022, before surging significantly from late 2022 onwards. By March 2025, stockholders’ equity nears $10.1 billion, indicating enhanced retained earnings, possible equity injections, or valuation increases.

Equity turnover begins to be reported as of September 2020 and initially improves from 0.7 to a peak of 0.91 by March 2023. This improvement reflects increasing efficiency in generating revenue from equity. However, post-peak, there is a gradual decline through to December 2024, reaching around 0.7 again, before a slight uptick to 0.73 by March 2025. The initial rise suggests growing operational efficiency, while the subsequent decline might indicate increasing equity base outpacing revenue growth or diminishing returns on equity.

Revenue

Consistent quarter-over-quarter growth from $523 million to $2 billion, with acceleration evident post mid-2021.

Stockholders’ Equity

Steady increase from $2.85 billion to over $10 billion, with strong growth notably after late 2022.

Equity Turnover

Improved from 0.7 to a peak near 0.91 (March 2023), then gradually declined back to around 0.7 by late 2024, followed by a minor recovery.

Overall, the data reflects robust growth in revenue and equity, alongside fluctuations in efficiency measures represented by equity turnover. The expanding equity base supports increased scale, while efficiency metrics suggest varying returns relative to equity investment over time.