Common-Size Income Statement
Quarterly Data
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Common Stock Valuation Ratios
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2014
- Operating Profit Margin since 2014
- Current Ratio since 2014
- Price to Earnings (P/E) since 2014
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Arista Networks Inc., common-size consolidated income statement (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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Revenue Composition
- The proportion of revenue derived from product sales exhibits an upward trajectory from around 78.56% in March 2020, peaking at approximately 86.73% by March 2023. Subsequently, it shows a slight declining trend through 2024 but remains above 83% by mid-2025. Conversely, service revenue as a percentage of total revenue declines steadily, dropping from 21.44% in March 2020 to approximately 14.87% by mid-2025, indicating a shift in revenue mix favoring products over services.
- Cost of Revenue
- The overall cost of revenue as a percentage of total revenue increased gradually over the observed period. Starting from roughly 35.33% in March 2020, it rose significantly to a peak around 40.47% in early 2023 before declining again towards 34.75% by mid-2025. The cost associated with products contributed a substantial part of this trend, reaching as high as -37.66% in early 2023 before easing back to just over -32% by mid-2025. Service-related cost percentages generally declined slightly, showing marginal improvements in cost efficiency within the service sector.
- Gross Profit
- Gross profit margin declined steadily from 64.67% in early 2020 to a low near 59.53% in early 2023 before recovering upwards to around 65.25% by mid-2025. This fluctuation in gross profit margin mirrors the trends in cost of revenue, highlighting periods of heightened cost pressure particularly in 2022-2023 and improvement thereafter.
- Operating Expenses
- Research and development expenses as a percentage of revenue decreased notably from around -21.63% in early 2020 to approximately -13.29% by mid-2025, signifying a reduction in R&D spending intensity relative to revenue. Sales and marketing expenses also showed a consistent reduction from near -10.91% down to about -5.74% in the same period. General and administrative costs reduced modestly as well, declining from -3.51% to as low as -1.33%. Overall operating expenses diminished appreciably, moving from roughly -36.06% in early 2020 to about -20.52% by mid-2025, reflecting efficiency improvements in operating cost management.
- Operating Income and Profitability
- Income from operations steadily increased from 28.61% in early 2020 to a peak above 44% in mid-2025, indicating enhanced operational profitability. Income before income taxes followed similar progression, with increases consistent with improvements in operating income and other net income components. Net income margins also improved, rising from about 26.47% in early 2020 to approximately 40.31% by mid-2025, underscoring overall strengthening profitability.
- Other Income and Tax Provision
- Other income (expense), net showed variability but a general increasing trend over the period, with notable spikes in early-to-mid 2023 and maintaining elevated levels beyond, contributing positively to pre-tax income. The provision for income taxes as a percentage of revenue fluctuated significantly, falling as low as approximately -1.38% during mid-2021 and rising close to -8.68% by mid-2025, reflecting variability in tax expense relative to income.
- Summary
- The data reveals an overarching trend of increasing revenue concentration in products alongside declining service revenue proportion. Despite rising cost pressures evident in early 2023, particularly in cost of revenue, subsequent periods show successful containment and reversal of such pressures leading to enhanced gross margins. Operating expenses decreased substantially as a proportion of revenue, contributing to significantly improved operating leverage and higher operating and net profit margins through mid-2025. Fluctuations in other income and tax provision impacted net margins but did not detract from an overall positive profitability trajectory over the time analyzed.