Balance Sheet: Assets

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.

Arista Networks Inc., consolidated balance sheet: assets

US$ in thousands

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	2,762,357)	1,938,606)	671,707)	620,813)	893,219)
Marketable securities	5,541,116)	3,069,362)	2,352,022)	2,787,502)	1,979,649)
Accounts receivable, net	1,140,478)	1,024,569)	923,096)	516,509)	389,540)
Inventories	1,834,572)	1,945,180)	1,289,706)	650,117)	479,668)
Prepaid expenses and other current assets	632,292)	412,518)	314,217)	237,735)	94,922)
Current assets	11,910,815)	8,390,235)	5,550,748)	4,812,676)	3,836,998)
Property and equipment, net	98,845)	101,580)	95,009)	78,634)	32,231)
Goodwill and acquisition-related intangible assets, net	330,540)	357,299)	388,129)	281,952)	312,486)
Deferred tax assets	1,440,418)	945,792)	574,912)	442,295)	441,531)
Other assets	263,303)	151,900)	166,612)	118,872)	115,673)
Long-term assets	2,133,106)	1,556,571)	1,224,662)	921,753)	901,921)
Total assets	14,043,921)	9,946,806)	6,775,410)	5,734,429)	4,738,919)

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).

The analysis of the annual financial data reveals consistent growth across most asset categories over the five-year period, indicating an expansion in the company's asset base and liquidity position.

Cash and Cash Equivalents: Cash reserves have shown significant fluctuations, starting at approximately 893 million USD in 2020, dipping to around 621 million USD in 2021, followed by a modest increase in 2022. From 2022 onwards, there is a marked acceleration, with cash balances reaching nearly 2.76 billion USD by the end of 2024. This suggests enhanced liquidity or effective cash management strategies in recent years.
Marketable Securities: Marketable securities increased steadily from 1.98 billion USD in 2020 to 2.79 billion USD in 2021, then saw a temporary decline in 2022. Subsequently, there is robust growth, with values exceeding 5.54 billion USD by 2024, more than doubling over two years, reinforcing the company's investment in liquid financial assets and indicating a strengthening financial position.
Accounts Receivable, Net: Accounts receivable exhibit a continuous upward trend, rising from 390 million USD in 2020 to 1.14 billion USD in 2024. The most substantial increase occurs between 2021 and 2022, suggesting growth in sales or extended credit terms, which necessitates monitoring for potential impact on working capital management.
Inventories: Inventory levels have grown significantly within the period, from 480 million USD in 2020 to approximately 1.83 billion USD in 2024, with the sharpest rise between 2021 and 2023. The slight decline in 2024 may indicate inventory optimization efforts. The overall increase points towards stockpiling to support sales growth or expanding product lines.
Prepaid Expenses and Other Current Assets: These assets show a steady increase from 95 million USD in 2020 to over 632 million USD in 2024, suggesting increased upfront payments or other short-term assets, consistent with the company’s growing operational scale.
Current Assets: Total current assets have expanded substantially, rising from approximately 3.84 billion USD in 2020 to nearly 11.91 billion USD in 2024. This indicates improved liquidity and operational capacity to meet short-term obligations, primarily driven by increases in cash, marketable securities, and inventories.
Property and Equipment, Net: Net property and equipment values rose from roughly 32 million USD in 2020 to around 101 million USD in 2023, followed by a slight decrease to 99 million USD in 2024. This stability suggests moderate capital expenditure with possible asset retirements or depreciation nearing a plateau.
Goodwill and Acquisition-related Intangible Assets, Net: This category fluctuates, decreasing from 312 million USD in 2020 to 282 million USD in 2021, then increasing to 388 million USD in 2022 before gradually declining to 331 million USD in 2024. The changes could reflect acquisition activity, impairment adjustments, or amortization effects.
Deferred Tax Assets: Deferred tax assets demonstrate robust growth, starting from 442 million USD in 2020 and accelerating to over 1.44 billion USD in 2024. This progressive increase may point to higher future tax benefits or timing differences related to income recognition and expense deductions.
Other Assets: Other assets show a moderate upward trend, increasing from approximately 116 million USD in 2020 to 263 million USD in 2024, suggesting growth in miscellaneous long-term assets.
Long-term Assets: Total long-term assets have expanded from 902 million USD in 2020 to over 2.13 billion USD in 2024, reflecting investments in fixed assets, intangible assets, and other long-term resources consistent with the expanding operational footprint and strategic initiatives.
Total Assets: Total assets have grown markedly, rising from about 4.74 billion USD in 2020 to 14.04 billion USD in 2024, representing nearly a threefold increase. This growth highlights significant capital accumulation and asset base expansion, pointing towards an aggressive growth strategy and enhanced financial strength.

Assets: Selected Items

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Current Assets: Selected Items

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Arista Networks Inc. (NYSE:ANET)

Balance Sheet: Assets

Assets: Selected Items

Current Assets: Selected Items