Arista Networks Inc., adjustment to net income

US$ in thousands

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income (as reported)	2,852,054)	2,087,321)	1,352,446)	840,854)	634,557)
Add: Available-for-sale investments	(5,704)	29,755)	(22,393)	(7,157)	(1,419)
Net income (adjusted)	2,846,350)	2,117,076)	1,330,053)	833,697)	633,138)

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Arista Networks Inc., adjusted profitability ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net Profit Margin
Reported net profit margin	40.73%	35.62%	30.87%	28.52%	27.38%
Adjusted net profit margin	40.64%	36.13%	30.36%	28.28%	27.32%
Return on Equity (ROE)
Reported ROE	28.54%	28.91%	27.68%	21.13%	19.11%
Adjusted ROE	28.48%	29.33%	27.22%	20.95%	19.07%
Return on Assets (ROA)
Reported ROA	20.31%	20.98%	19.96%	14.66%	13.39%
Adjusted ROA	20.27%	21.28%	19.63%	14.54%	13.36%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Arista Networks Inc. adjusted net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Arista Networks Inc. adjusted ROE improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Arista Networks Inc. adjusted ROA improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level.

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	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in thousands)
Net income	2,852,054)	2,087,321)	1,352,446)	840,854)	634,557)
Revenue	7,003,146)	5,860,168)	4,381,310)	2,948,037)	2,317,512)
Profitability Ratio
Net profit margin¹	40.73%	35.62%	30.87%	28.52%	27.38%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	2,846,350)	2,117,076)	1,330,053)	833,697)	633,138)
Revenue	7,003,146)	5,860,168)	4,381,310)	2,948,037)	2,317,512)
Profitability Ratio
Adjusted net profit margin²	40.64%	36.13%	30.36%	28.28%	27.32%

2024 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenue
= 100 × 2,852,054 ÷ 7,003,146 = 40.73%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 2,846,350 ÷ 7,003,146 = 40.64%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Arista Networks Inc. adjusted net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in thousands)
Net income	2,852,054)	2,087,321)	1,352,446)	840,854)	634,557)
Stockholders’ equity	9,994,807)	7,219,059)	4,885,820)	3,978,600)	3,320,291)
Profitability Ratio
ROE¹	28.54%	28.91%	27.68%	21.13%	19.11%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	2,846,350)	2,117,076)	1,330,053)	833,697)	633,138)
Stockholders’ equity	9,994,807)	7,219,059)	4,885,820)	3,978,600)	3,320,291)
Profitability Ratio
Adjusted ROE²	28.48%	29.33%	27.22%	20.95%	19.07%

2024 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 2,852,054 ÷ 9,994,807 = 28.54%

² Adjusted ROE = 100 × Adjusted net income ÷ Stockholders’ equity
= 100 × 2,846,350 ÷ 9,994,807 = 28.48%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Arista Networks Inc. adjusted ROE improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in thousands)
Net income	2,852,054)	2,087,321)	1,352,446)	840,854)	634,557)
Total assets	14,043,921)	9,946,806)	6,775,410)	5,734,429)	4,738,919)
Profitability Ratio
ROA¹	20.31%	20.98%	19.96%	14.66%	13.39%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	2,846,350)	2,117,076)	1,330,053)	833,697)	633,138)
Total assets	14,043,921)	9,946,806)	6,775,410)	5,734,429)	4,738,919)
Profitability Ratio
Adjusted ROA²	20.27%	21.28%	19.63%	14.54%	13.36%

2024 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 2,852,054 ÷ 14,043,921 = 20.31%

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 2,846,350 ÷ 14,043,921 = 20.27%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Arista Networks Inc. adjusted ROA improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level.

Arista Networks Inc. (NYSE:ANET)

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