Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Arista Networks Inc., long-term (investment) activity 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).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Arista Networks Inc. net fixed asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Arista Networks Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2021 to 2022 and from 2022 to 2023. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Arista Networks Inc. total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Arista Networks Inc. equity turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Net Fixed Asset Turnover
Arista Networks Inc., net fixed asset turnover 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) | ||||||
| Revenue | 5,860,168) | 4,381,310) | 2,948,037) | 2,317,512) | 2,410,706) | |
| Property and equipment, net | 101,580) | 95,009) | 78,634) | 32,231) | 39,273) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 57.69 | 46.11 | 37.49 | 71.90 | 61.38 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Apple Inc. | 8.77 | 9.36 | 9.28 | 7.47 | 6.96 | |
| Cisco Systems Inc. | 27.34 | 25.82 | 21.31 | 20.10 | 18.61 | |
| Super Micro Computer Inc. | 24.54 | 18.17 | 12.95 | 14.28 | 16.88 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Technology Hardware & Equipment | 9.81 | 10.24 | 10.02 | 8.34 | 7.87 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Information Technology | 3.52 | 4.14 | 4.45 | 4.24 | 4.29 | |
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
Net fixed asset turnover = Revenue ÷ Property and equipment, net
= 5,860,168 ÷ 101,580 = 57.69
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Arista Networks Inc. net fixed asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Arista Networks Inc., net fixed asset turnover (including operating lease, right-of-use asset) 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) | ||||||
| Revenue | 5,860,168) | 4,381,310) | 2,948,037) | 2,317,512) | 2,410,706) | |
| Property and equipment, net | 101,580) | 95,009) | 78,634) | 32,231) | 39,273) | |
| Operating lease right-of-use assets (included in Other assets) | 55,890) | 53,390) | 65,182) | 77,288) | 87,770) | |
| Property and equipment, net (including operating lease, right-of-use asset) | 157,470) | 148,399) | 143,816) | 109,519) | 127,043) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 37.21 | 29.52 | 20.50 | 21.16 | 18.98 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Apple Inc. | 7.05 | 7.51 | 7.39 | 6.06 | 6.96 | |
| Cisco Systems Inc. | 18.65 | 17.19 | 14.51 | 14.61 | 18.61 | |
| Super Micro Computer Inc. | 23.02 | 16.78 | 12.07 | 12.96 | 16.88 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Technology Hardware & Equipment | 7.83 | 8.13 | 7.91 | 6.71 | 7.85 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Information Technology | 3.09 | 3.59 | 3.79 | 3.60 | 4.00 | |
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenue ÷ Property and equipment, net (including operating lease, right-of-use asset)
= 5,860,168 ÷ 157,470 = 37.21
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Arista Networks Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2021 to 2022 and from 2022 to 2023. |
Total Asset Turnover
Arista Networks Inc., total asset turnover 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) | ||||||
| Revenue | 5,860,168) | 4,381,310) | 2,948,037) | 2,317,512) | 2,410,706) | |
| Total assets | 9,946,806) | 6,775,410) | 5,734,429) | 4,738,919) | 4,185,290) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.59 | 0.65 | 0.51 | 0.49 | 0.58 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Apple Inc. | 1.09 | 1.12 | 1.04 | 0.85 | 0.77 | |
| Cisco Systems Inc. | 0.56 | 0.55 | 0.51 | 0.52 | 0.53 | |
| Super Micro Computer Inc. | 1.94 | 1.62 | 1.59 | 1.74 | 2.08 | |
| Total Asset Turnover, Sector | ||||||
| Technology Hardware & Equipment | 0.97 | 1.00 | 0.92 | 0.77 | 0.72 | |
| Total Asset Turnover, Industry | ||||||
| Information Technology | 0.59 | 0.63 | 0.61 | 0.57 | 0.58 | |
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
Total asset turnover = Revenue ÷ Total assets
= 5,860,168 ÷ 9,946,806 = 0.59
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Arista Networks Inc. total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Equity Turnover
Arista Networks Inc., equity turnover 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) | ||||||
| Revenue | 5,860,168) | 4,381,310) | 2,948,037) | 2,317,512) | 2,410,706) | |
| Stockholders’ equity | 7,219,059) | 4,885,820) | 3,978,600) | 3,320,291) | 2,894,686) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 0.81 | 0.90 | 0.74 | 0.70 | 0.83 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Apple Inc. | 6.17 | 7.78 | 5.80 | 4.20 | 2.88 | |
| Cisco Systems Inc. | 1.29 | 1.30 | 1.21 | 1.30 | 1.55 | |
| Super Micro Computer Inc. | 3.61 | 3.64 | 3.25 | 3.13 | 3.72 | |
| Equity Turnover, Sector | ||||||
| Technology Hardware & Equipment | 3.92 | 4.71 | 3.86 | 3.06 | 2.49 | |
| Equity Turnover, Industry | ||||||
| Information Technology | 1.44 | 1.60 | 1.66 | 1.64 | 1.65 | |
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
Equity turnover = Revenue ÷ Stockholders’ equity
= 5,860,168 ÷ 7,219,059 = 0.81
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Arista Networks Inc. equity turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |