Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Arista Networks Inc., solvency ratios
Based on: 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), 10-K (reporting date: 2019-12-31).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Arista Networks Inc. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Arista Networks Inc. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Arista Networks Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Arista Networks Inc. financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023. |
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Arista Networks Inc. fixed charge coverage ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Equity
Arista Networks Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Stockholders’ equity | 7,219,059) | 4,885,820) | 3,978,600) | 3,320,291) | 2,894,686) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Apple Inc. | 1.80 | 2.39 | 1.99 | 1.73 | 1.19 | |
| Cisco Systems Inc. | 0.19 | 0.24 | 0.28 | 0.38 | 0.73 | |
| Super Micro Computer Inc. | 0.15 | 0.42 | 0.09 | 0.03 | 0.03 | |
| Debt to Equity, Sector | ||||||
| Technology Hardware & Equipment | 1.04 | 1.36 | 1.25 | 1.19 | 1.04 | |
| Debt to Equity, Industry | ||||||
| Information Technology | 0.62 | 0.67 | 0.76 | 0.87 | 0.87 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 0 ÷ 7,219,059 = 0.00
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. |
Debt to Equity (including Operating Lease Liability)
Arista Networks Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Operating lease liabilities, current (included in Other current liabilities) | 21,106) | 19,878) | 20,298) | 17,773) | 16,052) | |
| Operating lease liabilities, non-current (included in Other long-term liabilities) | 44,413) | 43,964) | 56,527) | 72,397) | 83,022) | |
| Total debt (including operating lease liability) | 65,519) | 63,842) | 76,825) | 90,170) | 99,074) | |
| Stockholders’ equity | 7,219,059) | 4,885,820) | 3,978,600) | 3,320,291) | 2,894,686) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.01 | 0.01 | 0.02 | 0.03 | 0.03 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Apple Inc. | 1.99 | 2.61 | 2.16 | 1.87 | 1.19 | |
| Cisco Systems Inc. | 0.21 | 0.27 | 0.31 | 0.41 | 0.73 | |
| Super Micro Computer Inc. | 0.16 | 0.44 | 0.11 | 0.05 | 0.03 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Technology Hardware & Equipment | 1.16 | 1.49 | 1.37 | 1.28 | 1.04 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.68 | 0.73 | 0.83 | 0.94 | 0.90 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 65,519 ÷ 7,219,059 = 0.01
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Arista Networks Inc. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital
Arista Networks Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Stockholders’ equity | 7,219,059) | 4,885,820) | 3,978,600) | 3,320,291) | 2,894,686) | |
| Total capital | 7,219,059) | 4,885,820) | 3,978,600) | 3,320,291) | 2,894,686) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Apple Inc. | 0.64 | 0.70 | 0.67 | 0.63 | 0.54 | |
| Cisco Systems Inc. | 0.16 | 0.19 | 0.22 | 0.28 | 0.42 | |
| Super Micro Computer Inc. | 0.13 | 0.30 | 0.08 | 0.03 | 0.02 | |
| Debt to Capital, Sector | ||||||
| Technology Hardware & Equipment | 0.51 | 0.58 | 0.56 | 0.54 | 0.51 | |
| Debt to Capital, Industry | ||||||
| Information Technology | 0.38 | 0.40 | 0.43 | 0.47 | 0.46 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 0 ÷ 7,219,059 = 0.00
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. |
Debt to Capital (including Operating Lease Liability)
Arista Networks Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Operating lease liabilities, current (included in Other current liabilities) | 21,106) | 19,878) | 20,298) | 17,773) | 16,052) | |
| Operating lease liabilities, non-current (included in Other long-term liabilities) | 44,413) | 43,964) | 56,527) | 72,397) | 83,022) | |
| Total debt (including operating lease liability) | 65,519) | 63,842) | 76,825) | 90,170) | 99,074) | |
| Stockholders’ equity | 7,219,059) | 4,885,820) | 3,978,600) | 3,320,291) | 2,894,686) | |
| Total capital (including operating lease liability) | 7,284,578) | 4,949,662) | 4,055,425) | 3,410,461) | 2,993,760) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.01 | 0.01 | 0.02 | 0.03 | 0.03 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Apple Inc. | 0.67 | 0.72 | 0.68 | 0.65 | 0.54 | |
| Cisco Systems Inc. | 0.18 | 0.21 | 0.24 | 0.29 | 0.42 | |
| Super Micro Computer Inc. | 0.14 | 0.30 | 0.10 | 0.05 | 0.02 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Technology Hardware & Equipment | 0.54 | 0.60 | 0.58 | 0.56 | 0.51 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.41 | 0.42 | 0.45 | 0.49 | 0.47 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 65,519 ÷ 7,284,578 = 0.01
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Arista Networks Inc. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets
Arista Networks Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Total assets | 9,946,806) | 6,775,410) | 5,734,429) | 4,738,919) | 4,185,290) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Apple Inc. | 0.32 | 0.34 | 0.36 | 0.35 | 0.32 | |
| Cisco Systems Inc. | 0.08 | 0.10 | 0.12 | 0.15 | 0.25 | |
| Super Micro Computer Inc. | 0.08 | 0.19 | 0.04 | 0.02 | 0.01 | |
| Debt to Assets, Sector | ||||||
| Technology Hardware & Equipment | 0.26 | 0.29 | 0.30 | 0.30 | 0.30 | |
| Debt to Assets, Industry | ||||||
| Information Technology | 0.26 | 0.26 | 0.28 | 0.30 | 0.30 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 0 ÷ 9,946,806 = 0.00
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. |
Debt to Assets (including Operating Lease Liability)
Arista Networks Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Operating lease liabilities, current (included in Other current liabilities) | 21,106) | 19,878) | 20,298) | 17,773) | 16,052) | |
| Operating lease liabilities, non-current (included in Other long-term liabilities) | 44,413) | 43,964) | 56,527) | 72,397) | 83,022) | |
| Total debt (including operating lease liability) | 65,519) | 63,842) | 76,825) | 90,170) | 99,074) | |
| Total assets | 9,946,806) | 6,775,410) | 5,734,429) | 4,738,919) | 4,185,290) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.01 | 0.01 | 0.01 | 0.02 | 0.02 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Apple Inc. | 0.35 | 0.38 | 0.39 | 0.38 | 0.32 | |
| Cisco Systems Inc. | 0.09 | 0.11 | 0.13 | 0.16 | 0.25 | |
| Super Micro Computer Inc. | 0.08 | 0.19 | 0.05 | 0.03 | 0.01 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Technology Hardware & Equipment | 0.29 | 0.31 | 0.33 | 0.32 | 0.30 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.28 | 0.29 | 0.31 | 0.33 | 0.31 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 65,519 ÷ 9,946,806 = 0.01
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Arista Networks Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Financial Leverage
Arista Networks Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total assets | 9,946,806) | 6,775,410) | 5,734,429) | 4,738,919) | 4,185,290) | |
| Stockholders’ equity | 7,219,059) | 4,885,820) | 3,978,600) | 3,320,291) | 2,894,686) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 1.38 | 1.39 | 1.44 | 1.43 | 1.45 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Apple Inc. | 5.67 | 6.96 | 5.56 | 4.96 | 3.74 | |
| Cisco Systems Inc. | 2.30 | 2.36 | 2.36 | 2.50 | 2.91 | |
| Super Micro Computer Inc. | 1.86 | 2.25 | 2.05 | 1.80 | 1.79 | |
| Financial Leverage, Sector | ||||||
| Technology Hardware & Equipment | 4.05 | 4.72 | 4.17 | 3.95 | 3.46 | |
| Financial Leverage, Industry | ||||||
| Information Technology | 2.44 | 2.56 | 2.71 | 2.90 | 2.86 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 9,946,806 ÷ 7,219,059 = 1.38
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Arista Networks Inc. financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023. |
Interest Coverage
Arista Networks Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 2,087,321) | 1,352,446) | 840,854) | 634,557) | 859,867) | |
| Add: Income tax expense | 334,705) | 229,350) | 90,025) | 104,306) | 2,403) | |
| Add: Interest expense | —) | —) | —) | —) | —) | |
| Earnings before interest and tax (EBIT) | 2,422,026) | 1,581,796) | 930,879) | 738,863) | 862,270) | |
| Solvency Ratio | ||||||
| Interest coverage1 | — | — | — | — | — | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Apple Inc. | 29.92 | 41.64 | 42.29 | 24.35 | 19.38 | |
| Cisco Systems Inc. | 36.87 | 41.21 | 31.56 | 24.88 | 17.96 | |
| Super Micro Computer Inc. | 72.55 | 53.71 | 48.81 | 40.01 | 13.97 | |
| Interest Coverage, Sector | ||||||
| Technology Hardware & Equipment | 31.25 | 42.09 | 41.08 | 24.67 | 19.29 | |
| Interest Coverage, Industry | ||||||
| Information Technology | 18.86 | 24.65 | 23.05 | 16.83 | 15.85 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 2,422,026 ÷ 0 = —
2 Click competitor name to see calculations.
Fixed Charge Coverage
Arista Networks Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 2,087,321) | 1,352,446) | 840,854) | 634,557) | 859,867) | |
| Add: Income tax expense | 334,705) | 229,350) | 90,025) | 104,306) | 2,403) | |
| Add: Interest expense | —) | —) | —) | —) | —) | |
| Earnings before interest and tax (EBIT) | 2,422,026) | 1,581,796) | 930,879) | 738,863) | 862,270) | |
| Add: Operating lease costs | 33,258) | 32,816) | 31,011) | 30,851) | 28,799) | |
| Earnings before fixed charges and tax | 2,455,284) | 1,614,612) | 961,890) | 769,714) | 891,069) | |
| Interest expense | —) | —) | —) | —) | —) | |
| Operating lease costs | 33,258) | 32,816) | 31,011) | 30,851) | 28,799) | |
| Fixed charges | 33,258) | 32,816) | 31,011) | 30,851) | 28,799) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 73.83 | 49.20 | 31.02 | 24.95 | 30.94 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Apple Inc. | 20.17 | 25.65 | 26.13 | 16.34 | 14.48 | |
| Cisco Systems Inc. | 18.98 | 20.30 | 16.92 | 14.79 | 12.28 | |
| Super Micro Computer Inc. | 40.95 | 24.03 | 12.52 | 10.45 | 7.48 | |
| Fixed Charge Coverage, Sector | ||||||
| Technology Hardware & Equipment | 20.34 | 25.07 | 24.67 | 16.09 | 14.08 | |
| Fixed Charge Coverage, Industry | ||||||
| Information Technology | 11.88 | 14.17 | 13.49 | 10.22 | 10.45 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 2,455,284 ÷ 33,258 = 73.83
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Arista Networks Inc. fixed charge coverage ratio improved from 2021 to 2022 and from 2022 to 2023. |