Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Arista Networks Inc., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Arista Networks Inc. gross profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Arista Networks Inc. operating profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Arista Networks Inc. net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Arista Networks Inc. ROE improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Arista Networks Inc. ROA improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
Gross Profit Margin
Arista Networks Inc., gross profit margin 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) | ||||||
| Gross profit | 4,491,303) | 3,630,281) | 2,675,696) | 1,880,779) | 1,481,886) | |
| Revenue | 7,003,146) | 5,860,168) | 4,381,310) | 2,948,037) | 2,317,512) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 64.13% | 61.95% | 61.07% | 63.80% | 63.94% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Apple Inc. | 46.21% | 44.13% | 43.31% | 41.78% | 38.23% | |
| Cisco Systems Inc. | 64.73% | 62.73% | 62.55% | 64.02% | 64.26% | |
| Dell Technologies Inc. | 23.60% | 22.18% | 21.63% | 31.22% | 31.40% | |
| Super Micro Computer Inc. | — | 18.01% | 15.40% | 15.03% | 15.76% | |
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
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 4,491,303 ÷ 7,003,146 = 64.13%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Arista Networks Inc. gross profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
Operating Profit Margin
Arista Networks Inc., operating profit margin 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) | ||||||
| Income from operations | 2,944,616) | 2,257,249) | 1,527,106) | 924,739) | 699,684) | |
| Revenue | 7,003,146) | 5,860,168) | 4,381,310) | 2,948,037) | 2,317,512) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 42.05% | 38.52% | 34.86% | 31.37% | 30.19% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Apple Inc. | 31.51% | 29.82% | 30.29% | 29.78% | 24.15% | |
| Cisco Systems Inc. | 22.64% | 26.37% | 27.09% | 25.76% | 27.63% | |
| Dell Technologies Inc. | 5.89% | 5.64% | 4.60% | 5.46% | 2.85% | |
| Super Micro Computer Inc. | — | 10.68% | 6.45% | 3.48% | 2.57% | |
| Operating Profit Margin, Sector | ||||||
| Technology Hardware & Equipment | — | 24.86% | 25.14% | 24.78% | 19.76% | |
| Operating Profit Margin, Industry | ||||||
| Information Technology | — | 24.60% | 26.53% | 26.83% | 22.82% | |
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
Operating profit margin = 100 × Income from operations ÷ Revenue
= 100 × 2,944,616 ÷ 7,003,146 = 42.05%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Arista Networks Inc. operating profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
Net Profit Margin
Arista Networks Inc., net profit margin 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) | ||||||
| Net income | 2,852,054) | 2,087,321) | 1,352,446) | 840,854) | 634,557) | |
| Revenue | 7,003,146) | 5,860,168) | 4,381,310) | 2,948,037) | 2,317,512) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 40.73% | 35.62% | 30.87% | 28.52% | 27.38% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Apple Inc. | 23.97% | 25.31% | 25.31% | 25.88% | 20.91% | |
| Cisco Systems Inc. | 19.18% | 22.13% | 22.91% | 21.26% | 22.75% | |
| Dell Technologies Inc. | 3.63% | 2.39% | 5.50% | 3.45% | 5.01% | |
| Super Micro Computer Inc. | — | 8.98% | 5.49% | 3.14% | 2.52% | |
| Net Profit Margin, Sector | ||||||
| Technology Hardware & Equipment | — | 20.66% | 21.34% | 21.20% | 17.54% | |
| Net Profit Margin, Industry | ||||||
| Information Technology | — | 20.51% | 22.53% | 23.72% | 19.79% | |
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
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 2,852,054 ÷ 7,003,146 = 40.73%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Arista Networks Inc. net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
Return on Equity (ROE)
Arista Networks Inc., ROE 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) | ||||||
| Net income | 2,852,054) | 2,087,321) | 1,352,446) | 840,854) | 634,557) | |
| Stockholders’ equity | 9,994,807) | 7,219,059) | 4,885,820) | 3,978,600) | 3,320,291) | |
| Profitability Ratio | ||||||
| ROE1 | 28.54% | 28.91% | 27.68% | 21.13% | 19.11% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Apple Inc. | 164.59% | 156.08% | 196.96% | 150.07% | 87.87% | |
| Cisco Systems Inc. | 22.70% | 28.44% | 29.70% | 25.66% | 29.57% | |
| Dell Technologies Inc. | — | — | — | 131.10% | — | |
| Super Micro Computer Inc. | — | 32.45% | 20.00% | 10.20% | 7.91% | |
| ROE, Sector | ||||||
| Technology Hardware & Equipment | — | 101.96% | 124.98% | 97.82% | 69.73% | |
| ROE, Industry | ||||||
| Information Technology | — | 32.16% | 39.26% | 42.62% | 35.95% | |
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
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 2,852,054 ÷ 9,994,807 = 28.54%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Arista Networks Inc. ROE improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Return on Assets (ROA)
Arista Networks Inc., ROA 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) | ||||||
| Net income | 2,852,054) | 2,087,321) | 1,352,446) | 840,854) | 634,557) | |
| Total assets | 14,043,921) | 9,946,806) | 6,775,410) | 5,734,429) | 4,738,919) | |
| Profitability Ratio | ||||||
| ROA1 | 20.31% | 20.98% | 19.96% | 14.66% | 13.39% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Apple Inc. | 25.68% | 27.51% | 28.29% | 26.97% | 17.73% | |
| Cisco Systems Inc. | 8.29% | 12.38% | 12.57% | 10.86% | 11.82% | |
| Dell Technologies Inc. | 3.91% | 2.73% | 6.00% | 2.63% | 3.88% | |
| Super Micro Computer Inc. | — | 17.42% | 8.90% | 4.99% | 4.39% | |
| ROA, Sector | ||||||
| Technology Hardware & Equipment | — | 20.58% | 21.62% | 18.88% | 13.59% | |
| ROA, Industry | ||||||
| Information Technology | — | 12.61% | 14.64% | 14.75% | 11.52% | |
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
ROA = 100 × Net income ÷ Total assets
= 100 × 2,852,054 ÷ 14,043,921 = 20.31%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Arista Networks Inc. ROA improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |