Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Arista Networks Inc., liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Current ratio | 4.36 | 4.39 | 4.29 | 4.34 | 4.99 | |
| Quick ratio | 3.46 | 3.16 | 3.05 | 3.54 | 4.25 | |
| Cash ratio | 3.04 | 2.62 | 2.34 | 3.07 | 3.74 |
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Arista Networks Inc. current ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Arista Networks Inc. quick ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Arista Networks Inc. cash ratio improved from 2022 to 2023 and from 2023 to 2024. |
Current Ratio
Arista Networks Inc., current ratio 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) | |
| Current liabilities | 2,732,222) | 1,909,606) | 1,293,531) | 1,109,829) | 768,243) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 4.36 | 4.39 | 4.29 | 4.34 | 4.99 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Apple Inc. | 0.87 | 0.99 | 0.88 | 1.07 | 1.36 | |
| Cisco Systems Inc. | 0.91 | 1.38 | 1.43 | 1.49 | 1.72 | |
| Dell Technologies Inc. | 0.74 | 0.82 | 0.80 | 0.80 | 0.70 | |
| Super Micro Computer Inc. | — | 2.31 | 1.91 | 1.93 | 2.25 | |
| Current Ratio, Sector | ||||||
| Technology Hardware & Equipment | — | 1.04 | 0.95 | 1.08 | 1.24 | |
| Current Ratio, Industry | ||||||
| Information Technology | — | 1.41 | 1.37 | 1.55 | 1.71 | |
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
Current ratio = Current assets ÷ Current liabilities
= 11,910,815 ÷ 2,732,222 = 4.36
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Arista Networks Inc. current ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Quick Ratio
Arista Networks Inc., quick ratio 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) | ||||||
| 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) | |
| Total quick assets | 9,443,951) | 6,032,537) | 3,946,825) | 3,924,824) | 3,262,408) | |
| Current liabilities | 2,732,222) | 1,909,606) | 1,293,531) | 1,109,829) | 768,243) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 3.46 | 3.16 | 3.05 | 3.54 | 4.25 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Apple Inc. | 0.75 | 0.84 | 0.71 | 0.91 | 1.22 | |
| Cisco Systems Inc. | 0.69 | 1.13 | 1.16 | 1.32 | 1.58 | |
| Dell Technologies Inc. | 0.44 | 0.52 | 0.49 | 0.59 | 0.51 | |
| Super Micro Computer Inc. | — | 1.16 | 0.75 | 0.72 | 0.87 | |
| Quick Ratio, Sector | ||||||
| Technology Hardware & Equipment | — | 0.83 | 0.72 | 0.89 | 1.08 | |
| Quick Ratio, Industry | ||||||
| Information Technology | — | 1.12 | 1.09 | 1.30 | 1.47 | |
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
Quick ratio = Total quick assets ÷ Current liabilities
= 9,443,951 ÷ 2,732,222 = 3.46
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Arista Networks Inc. quick ratio improved from 2022 to 2023 and from 2023 to 2024. |
Cash Ratio
Arista Networks Inc., cash ratio 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) | ||||||
| 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) | |
| Total cash assets | 8,303,473) | 5,007,968) | 3,023,729) | 3,408,315) | 2,872,868) | |
| Current liabilities | 2,732,222) | 1,909,606) | 1,293,531) | 1,109,829) | 768,243) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 3.04 | 2.62 | 2.34 | 3.07 | 3.74 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Apple Inc. | 0.37 | 0.42 | 0.31 | 0.50 | 0.86 | |
| Cisco Systems Inc. | 0.44 | 0.84 | 0.75 | 0.93 | 1.16 | |
| Dell Technologies Inc. | 0.15 | 0.17 | 0.17 | 0.26 | 0.18 | |
| Super Micro Computer Inc. | — | 0.32 | 0.18 | 0.24 | 0.30 | |
| Cash Ratio, Sector | ||||||
| Technology Hardware & Equipment | — | 0.44 | 0.34 | 0.50 | 0.72 | |
| Cash Ratio, Industry | ||||||
| Information Technology | — | 0.70 | 0.66 | 0.89 | 1.07 | |
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 ratio = Total cash assets ÷ Current liabilities
= 8,303,473 ÷ 2,732,222 = 3.04
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Arista Networks Inc. cash ratio improved from 2022 to 2023 and from 2023 to 2024. |