Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Arista Networks Inc., short-term (operating) activity ratios
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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Arista Networks Inc. inventory turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Arista Networks Inc. receivables turnover ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Arista Networks Inc. payables turnover ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Arista Networks Inc. working capital turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Arista Networks Inc. number of days of inventory outstanding deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Arista Networks Inc. number of days of receivables outstanding improved from 2022 to 2023 and from 2023 to 2024. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Arista Networks Inc. operating cycle deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Arista Networks Inc. number of days of payables outstanding increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Arista Networks Inc. cash conversion cycle deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Inventory Turnover
Arista Networks Inc., inventory 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) | ||||||
| Cost of revenue | 2,511,843) | 2,229,887) | 1,705,614) | 1,067,258) | 835,626) | |
| Inventories | 1,834,572) | 1,945,180) | 1,289,706) | 650,117) | 479,668) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 1.37 | 1.15 | 1.32 | 1.64 | 1.74 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Apple Inc. | 28.87 | 33.82 | 45.20 | 32.37 | 41.75 | |
| Cisco Systems Inc. | 5.63 | 5.83 | 7.52 | 11.50 | 13.74 | |
| Dell Technologies Inc. | 18.65 | 16.67 | 13.45 | 19.05 | 19.27 | |
| Super Micro Computer Inc. | 2.98 | 4.04 | 2.84 | 2.90 | 3.30 | |
| Inventory Turnover, Sector | ||||||
| Technology Hardware & Equipment | 15.27 | 17.81 | 20.20 | 22.66 | 25.52 | |
| Inventory Turnover, Industry | ||||||
| Information Technology | 7.86 | 8.01 | 8.61 | 10.44 | 11.17 | |
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
Inventory turnover = Cost of revenue ÷ Inventories
= 2,511,843 ÷ 1,834,572 = 1.37
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Arista Networks Inc. inventory turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Receivables Turnover
Arista Networks Inc., receivables 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 | 7,003,146) | 5,860,168) | 4,381,310) | 2,948,037) | 2,317,512) | |
| Accounts receivable, net | 1,140,478) | 1,024,569) | 923,096) | 516,509) | 389,540) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 6.14 | 5.72 | 4.75 | 5.71 | 5.95 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Apple Inc. | 11.70 | 12.99 | 13.99 | 13.92 | 17.03 | |
| Cisco Systems Inc. | 8.05 | 9.74 | 7.79 | 8.64 | 9.01 | |
| Dell Technologies Inc. | 9.46 | 8.20 | 7.84 | 7.37 | 7.38 | |
| Super Micro Computer Inc. | 5.48 | 6.20 | 6.23 | 7.67 | 8.27 | |
| Receivables Turnover, Sector | ||||||
| Technology Hardware & Equipment | 10.41 | 11.11 | 11.25 | 11.27 | 12.09 | |
| Receivables Turnover, Industry | ||||||
| Information Technology | 6.98 | 7.46 | 7.43 | 7.53 | 7.92 | |
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
Receivables turnover = Revenue ÷ Accounts receivable, net
= 7,003,146 ÷ 1,140,478 = 6.14
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Arista Networks Inc. receivables turnover ratio improved from 2022 to 2023 and from 2023 to 2024. |
Payables Turnover
Arista Networks Inc., payables 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) | ||||||
| Cost of revenue | 2,511,843) | 2,229,887) | 1,705,614) | 1,067,258) | 835,626) | |
| Accounts payable | 381,083) | 435,059) | 232,572) | 202,636) | 134,235) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 6.59 | 5.13 | 7.33 | 5.27 | 6.23 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Apple Inc. | 3.05 | 3.42 | 3.49 | 3.89 | 4.01 | |
| Cisco Systems Inc. | 8.24 | 9.19 | 8.47 | 7.59 | 7.94 | |
| Dell Technologies Inc. | 3.48 | 4.28 | 2.92 | 2.99 | 3.15 | |
| Super Micro Computer Inc. | 8.78 | 7.52 | 6.71 | 4.94 | 6.74 | |
| Payables Turnover, Sector | ||||||
| Technology Hardware & Equipment | 3.38 | 3.81 | 3.48 | 3.76 | 3.90 | |
| Payables Turnover, Industry | ||||||
| Information Technology | 4.27 | 4.79 | 4.25 | 4.63 | 4.91 | |
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
Payables turnover = Cost of revenue ÷ Accounts payable
= 2,511,843 ÷ 381,083 = 6.59
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Arista Networks Inc. payables turnover ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level. |
Working Capital Turnover
Arista Networks Inc., working capital 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) | ||||||
| Current assets | 11,910,815) | 8,390,235) | 5,550,748) | 4,812,676) | 3,836,998) | |
| Less: Current liabilities | 2,732,222) | 1,909,606) | 1,293,531) | 1,109,829) | 768,243) | |
| Working capital | 9,178,593) | 6,480,629) | 4,257,217) | 3,702,847) | 3,068,755) | |
| Revenue | 7,003,146) | 5,860,168) | 4,381,310) | 2,948,037) | 2,317,512) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 0.76 | 0.90 | 1.03 | 0.80 | 0.76 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Apple Inc. | — | — | — | 39.10 | 7.16 | |
| Cisco Systems Inc. | — | 4.73 | 4.65 | 3.88 | 2.70 | |
| Dell Technologies Inc. | — | — | — | — | — | |
| Super Micro Computer Inc. | 2.28 | 3.95 | 3.89 | 3.96 | 3.77 | |
| Working Capital Turnover, Sector | ||||||
| Technology Hardware & Equipment | — | 59.87 | — | 31.78 | 9.38 | |
| Working Capital Turnover, Industry | ||||||
| Information Technology | 8.94 | 5.77 | 6.47 | 4.33 | 3.30 | |
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
Working capital turnover = Revenue ÷ Working capital
= 7,003,146 ÷ 9,178,593 = 0.76
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Arista Networks Inc. working capital turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Average Inventory Processing Period
Arista Networks Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 1.37 | 1.15 | 1.32 | 1.64 | 1.74 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 267 | 318 | 276 | 222 | 210 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Apple Inc. | 13 | 11 | 8 | 11 | 9 | |
| Cisco Systems Inc. | 65 | 63 | 49 | 32 | 27 | |
| Dell Technologies Inc. | 20 | 22 | 27 | 19 | 19 | |
| Super Micro Computer Inc. | 122 | 90 | 128 | 126 | 110 | |
| Average Inventory Processing Period, Sector | ||||||
| Technology Hardware & Equipment | 24 | 20 | 18 | 16 | 14 | |
| Average Inventory Processing Period, Industry | ||||||
| Information Technology | 46 | 46 | 42 | 35 | 33 | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 1.37 = 267
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Arista Networks Inc. number of days of inventory outstanding deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Average Receivable Collection Period
Arista Networks Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 6.14 | 5.72 | 4.75 | 5.71 | 5.95 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 59 | 64 | 77 | 64 | 61 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Apple Inc. | 31 | 28 | 26 | 26 | 21 | |
| Cisco Systems Inc. | 45 | 37 | 47 | 42 | 41 | |
| Dell Technologies Inc. | 39 | 45 | 47 | 50 | 49 | |
| Super Micro Computer Inc. | 67 | 59 | 59 | 48 | 44 | |
| Average Receivable Collection Period, Sector | ||||||
| Technology Hardware & Equipment | 35 | 33 | 32 | 32 | 30 | |
| Average Receivable Collection Period, Industry | ||||||
| Information Technology | 52 | 49 | 49 | 48 | 46 | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.14 = 59
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Arista Networks Inc. number of days of receivables outstanding improved from 2022 to 2023 and from 2023 to 2024. |
Operating Cycle
Arista Networks Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 267 | 318 | 276 | 222 | 210 | |
| Average receivable collection period | 59 | 64 | 77 | 64 | 61 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 326 | 382 | 353 | 286 | 271 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Apple Inc. | 44 | 39 | 34 | 37 | 30 | |
| Cisco Systems Inc. | 110 | 100 | 96 | 74 | 68 | |
| Dell Technologies Inc. | 59 | 67 | 74 | 69 | 68 | |
| Super Micro Computer Inc. | 189 | 149 | 187 | 174 | 154 | |
| Operating Cycle, Sector | ||||||
| Technology Hardware & Equipment | 59 | 53 | 50 | 48 | 44 | |
| Operating Cycle, Industry | ||||||
| Information Technology | 98 | 95 | 91 | 83 | 79 | |
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
Operating cycle = Average inventory processing period + Average receivable collection period
= 267 + 59 = 326
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Arista Networks Inc. operating cycle deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Average Payables Payment Period
Arista Networks Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 6.59 | 5.13 | 7.33 | 5.27 | 6.23 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 55 | 71 | 50 | 69 | 59 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Apple Inc. | 120 | 107 | 105 | 94 | 91 | |
| Cisco Systems Inc. | 44 | 40 | 43 | 48 | 46 | |
| Dell Technologies Inc. | 105 | 85 | 125 | 122 | 116 | |
| Super Micro Computer Inc. | 42 | 49 | 54 | 74 | 54 | |
| Average Payables Payment Period, Sector | ||||||
| Technology Hardware & Equipment | 108 | 96 | 105 | 97 | 94 | |
| Average Payables Payment Period, Industry | ||||||
| Information Technology | 85 | 76 | 86 | 79 | 74 | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 6.59 = 55
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Arista Networks Inc. number of days of payables outstanding increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level. |
Cash Conversion Cycle
Arista Networks Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 267 | 318 | 276 | 222 | 210 | |
| Average receivable collection period | 59 | 64 | 77 | 64 | 61 | |
| Average payables payment period | 55 | 71 | 50 | 69 | 59 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 271 | 311 | 303 | 217 | 212 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Apple Inc. | -76 | -68 | -71 | -57 | -61 | |
| Cisco Systems Inc. | 66 | 60 | 53 | 26 | 22 | |
| Dell Technologies Inc. | -46 | -18 | -51 | -53 | -48 | |
| Super Micro Computer Inc. | 147 | 100 | 133 | 100 | 100 | |
| Cash Conversion Cycle, Sector | ||||||
| Technology Hardware & Equipment | -49 | -43 | -55 | -49 | -50 | |
| Cash Conversion Cycle, Industry | ||||||
| Information Technology | 13 | 19 | 5 | 4 | 5 | |
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 267 + 59 – 55 = 271
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Arista Networks Inc. cash conversion cycle deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |