Arista Networks, Inc. (ANET) 10-Year Financial Performance & Capital Metrics

ANET • • Industrial / General

TechnologyComputer HardwareNetworking & Communications EquipmentCloud Networking Infrastructure

AboutArista Networks, Inc. develops, markets, and sells cloud networking solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company's cloud networking solutions consist of extensible operating systems, a set of network applications, as well as gigabit Ethernet switching and routing platforms. It also provides post contract customer support services, such as technical support, hardware repair and parts replacement beyond standard warranty, bug fix, patch, and upgrade services. The company serves a range of industries comprising internet companies, service providers, financial services organizations, government agencies, media and entertainment companies, and others. It markets and sells its products through distributors, system integrators, value-added resellers, and original equipment manufacturer partners, as well as through its direct sales force. The company was formerly known as Arastra, Inc. and changed its name to Arista Networks, Inc. in October 2008. Arista Networks, Inc. was incorporated in 2004 and is headquartered in Santa Clara, California.Show more

Revenue $7B +19.5%
EBITDA $3.01B +29.2%
Net Income $2.85B +36.6%
EPS (Diluted) 2.23 +35.2%
Gross Margin 64.13% +3.5%
EBITDA Margin 42.93% +8.1%
Operating Margin 42.05% +9.2%
Net Margin 40.73% +14.3%
ROE 33.14% -3.9%
ROIC 35.3% -0.6%
Debt/Equity -
Interest Coverage -

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Excellent 3Y average ROE of 32.7%
✓Strong 5Y profit CAGR of 27.1%
✓FCF machine: 52.5% free cash flow margin
✓High quality earnings: Operating CF exceeds net income
✓Strong 5Y sales CAGR of 23.8%
✓Healthy 5Y average net margin of 32.6%

✗Weaknesses

✗Expensive at 16.7x book value

Price & Volume

Loading chart...

Growth Metrics

Revenue CAGR

10Y28.2%

5Y23.77%

3Y33.43%

TTM27.75%

Profit (Net Income) CAGR

10Y41.79%

5Y27.1%

3Y50.25%

TTM25.97%

EPS CAGR

10Y39.38%

5Y27.57%

3Y50.06%

TTM26.44%

ROCE

10Y Avg24.34%

5Y Avg26.82%

3Y Avg31.35%

Latest30.44%

Peer Comparison

Cloud Networking Infrastructure

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
ANETArista Networks, Inc.	164.45B	130.59	58.56	19.5%	39.73%	28.19%	2.24%

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	837.59M	1.13B	1.65B	2.15B	2.41B	2.32B	2.95B	4.38B	5.86B	7B
Revenue Growth %	0.43%	0.35%	0.46%	0.31%	0.12%	-0.04%	0.27%	0.49%	0.34%	0.2%
Cost of Goods Sold+	294.03M	406.05M	584.42M	777.99M	866.37M	835.63M	1.07B	1.71B	2.23B	2.51B
COGS % of Revenue	0.35%	0.36%	0.36%	0.36%	0.36%	0.36%	0.36%	0.39%	0.38%	0.36%
Gross Profit+	543.56M	723.12M	1.06B	1.37B	1.54B	1.48B	1.88B	2.68B	3.63B	4.49B
Gross Margin %	0.65%	0.64%	0.64%	0.64%	0.64%	0.64%	0.64%	0.61%	0.62%	0.64%
Gross Profit Growth %	0.39%	0.33%	0.47%	0.29%	0.12%	-0.04%	0.27%	0.42%	0.36%	0.24%
Operating Expenses+	394.25M	479.71M	591.5M	1.1B	738.56M	782.2M	956.04M	1.15B	1.37B	1.55B
OpEx % of Revenue	0.47%	0.42%	0.36%	0.51%	0.31%	0.34%	0.32%	0.26%	0.23%	0.22%
Selling, General & Admin	184.8M	206.13M	241.9M	252.56M	275.81M	295.61M	369.29M	420.2M	518.11M	549.97M
SG&A % of Revenue	0.22%	0.18%	0.15%	0.12%	0.11%	0.13%	0.13%	0.1%	0.09%	0.08%
Research & Development	209.45M	273.58M	349.59M	442.47M	462.76M	486.59M	586.75M	728.39M	854.92M	996.72M
R&D % of Revenue	0.25%	0.24%	0.21%	0.21%	0.19%	0.21%	0.2%	0.17%	0.15%	0.14%
Other Operating Expenses	0	0	0	405M	0	0	0	0	0	0
Operating Income+	149.31M	243.41M	470.27M	273.35M	805.77M	699.68M	924.74M	1.53B	2.26B	2.94B
Operating Margin %	0.18%	0.22%	0.29%	0.13%	0.33%	0.3%	0.31%	0.35%	0.39%	0.42%
Operating Income Growth %	0.19%	0.63%	0.93%	-0.42%	1.95%	-0.13%	0.32%	0.65%	0.48%	0.3%
EBITDA+	162.98M	263.16M	490.91M	301.02M	838.62M	734.84M	975.07M	1.59B	2.33B	3.01B
EBITDA Margin %	0.19%	0.23%	0.3%	0.14%	0.35%	0.32%	0.33%	0.36%	0.4%	0.43%
EBITDA Growth %	0.2%	0.61%	0.87%	-0.39%	1.79%	-0.12%	0.33%	0.63%	0.46%	0.29%
D&A (Non-Cash Add-back)	13.67M	19.75M	20.64M	27.67M	32.85M	35.16M	50.33M	62.7M	70.63M	62.04M
EBIT	149.16M	245.36M	477.54M	291.5M	805.77M	699.68M	924.74M	1.53B	2.26B	2.94B
Net Interest Income+	-3.15M	-141K	5.31M	28.96M	51.14M	27.14M	7.21M	27.56M	152.42M	311M
Interest Income	0	3M	8.09M	31.67M	51.14M	27.14M	7.21M	27.56M	152.42M	311M
Interest Expense	3.15M	3.14M	2.78M	2.7M	0	0	0	0	0	0
Other Income/Expense	-3.3M	-1.18M	4.49M	15.45M	56.5M	39.18M	6.14M	54.69M	164.78M	320.42M
Pretax Income+	146.01M	242.22M	474.76M	288.8M	862.27M	738.86M	930.88M	1.58B	2.42B	3.27B
Pretax Margin %	0.17%	0.21%	0.29%	0.13%	0.36%	0.32%	0.32%	0.36%	0.41%	0.47%
Income Tax+	24.91M	58.04M	51.56M	-39.31M	2.4M	104.31M	90.03M	229.35M	334.7M	412.98M
Effective Tax Rate %	0.83%	0.76%	0.89%	1.14%	1%	0.86%	0.9%	0.86%	0.86%	0.87%
Net Income+	121.1M	184.19M	423.2M	328.12M	859.87M	634.56M	840.85M	1.35B	2.09B	2.85B
Net Margin %	0.14%	0.16%	0.26%	0.15%	0.36%	0.27%	0.29%	0.31%	0.36%	0.41%
Net Income Growth %	0.39%	0.52%	1.3%	-0.22%	1.62%	-0.26%	0.33%	0.61%	0.54%	0.37%
Net Income (Continuing)	121.1M	184.19M	423.2M	328.12M	859.87M	634.56M	840.85M	1.35B	2.09B	2.85B
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	0.10	0.16	0.33	0.25	0.66	0.50	0.66	1.07	1.65	2.23
EPS Growth %	0.24%	0.6%	1.06%	-0.23%	1.6%	-0.24%	0.32%	0.62%	0.54%	0.35%
EPS (Basic)	0.11	0.17	0.37	0.27	0.70	0.52	0.69	1.10	1.69	2.27
Diluted Shares Outstanding	1.14B	1.17B	1.26B	1.29B	1.29B	1.27B	1.28B	1.27B	1.27B	1.28B
Basic Shares Outstanding	1.06B	1.1B	1.16B	1.2B	1.22B	1.22B	1.23B	1.23B	1.24B	1.26B
Dividend Payout Ratio	-	-	-	-	-	-	-	-	-	-

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	974.33M	1.53B	2.27B	2.71B	3.47B	3.84B	4.81B	5.55B	8.4B	11.91B
Cash & Short-Term Investments	687.33M	867.83M	1.54B	1.96B	2.72B	2.87B	3.41B	3.02B	5.01B	8.3B
Cash Only	687.33M	567.92M	859.19M	649.95M	1.11B	893.22M	620.81M	671.71M	1.94B	2.76B
Short-Term Investments	0	299.91M	676.36M	1.31B	1.61B	1.98B	2.79B	2.35B	3.07B	5.54B
Accounts Receivable	144.26M	253.12M	247.35M	331.78M	391.99M	389.54M	516.51M	923.1M	1.03B	1.14B
Days Sales Outstanding	62.87	81.82	54.84	56.29	59.35	61.35	63.95	76.9	64.43	59.44
Inventory	92.13M	236.49M	306.2M	264.56M	243.82M	479.67M	650.12M	1.29B	1.95B	1.83B
Days Inventory Outstanding	114.37	212.58	191.24	124.12	102.72	209.52	222.34	276	318.4	266.58
Other Current Assets	29.27M	79.14M	96.22M	95.73M	64.46M	60.56M	172.89M	0	0	632.29M
Total Non-Current Assets+	185.56M	202.88M	194.43M	367.18M	713.65M	901.92M	921.75M	1.22B	1.56B	2.13B
Property, Plant & Equipment	79.71M	76.96M	74.28M	75.36M	127.04M	109.52M	143.82M	95.01M	101.58M	98.84M
Fixed Asset Turnover	10.51x	14.67x	22.16x	28.55x	18.98x	21.16x	20.50x	46.11x	57.69x	70.85x
Goodwill	0	0	0	53.68M	54.85M	189.7M	188.4M	265.92M	268.53M	268.53M
Intangible Assets	0	0	0	58.61M	45.23M	122.79M	93.56M	122.2M	88.77M	62.01M
Long-Term Investments	36.64M	36.14M	36.14M	30.34M	4.15M	8.31M	20.25M	39.47M	0	0
Other Non-Current Assets	20.79M	18.82M	18.89M	22.7M	30.35M	30.07M	33.44M	127.14M	151.9M	263.3M
Total Assets+	1.16B	1.73B	2.46B	3.08B	4.19B	4.74B	5.73B	6.78B	9.96B	14.04B
Asset Turnover	0.72x	0.65x	0.67x	0.70x	0.58x	0.49x	0.51x	0.65x	0.59x	0.50x
Asset Growth %	0.43%	0.49%	0.42%	0.25%	0.36%	0.13%	0.21%	0.18%	0.47%	0.41%
Total Current Liabilities+	235.01M	459.55M	529.9M	606.5M	597.07M	768.24M	1.11B	1.29B	1.92B	2.73B
Accounts Payable	43.97M	79.46M	52.2M	93.76M	92.11M	134.24M	202.64M	232.57M	435.06M	381.08M
Days Payables Outstanding	54.58	71.42	32.6	43.99	38.8	58.63	69.3	49.77	71.21	55.38
Short-Term Debt	0	0	0	0	0	0	0	0	0	0
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Liabilities	6.69M	15.79M	16.17M	30.91M	52.05M	94.39M	86.97M	248.09M	296.1M	336.43M
Current Ratio	4.15x	3.32x	4.28x	4.48x	5.81x	4.99x	4.34x	4.29x	4.38x	4.36x
Quick Ratio	3.75x	2.81x	3.70x	4.04x	5.41x	4.37x	3.75x	3.29x	3.36x	3.69x
Cash Conversion Cycle	122.65	222.98	213.48	136.42	123.27	212.24	216.99	303.13	311.61	270.65
Total Non-Current Liabilities+	136.73M	161.63M	269.04M	332.09M	693.53M	650.38M	646M	596.06M	818.14M	1.32B
Long-Term Debt	0	0	0	0	0	0	0	0	0	0
Capital Lease Obligations	41.21M	39.59M	37.67M	35.43M	83.02M	72.4M	56.53M	43.96M	0	0
Deferred Tax Liabilities	0	0	0	3.75M	254.71M	227.94M	129.07M	42K	0	0
Other Non-Current Liabilities	20.76M	22.46M	43.81M	64.27M	93.18M	95.48M	124.67M	148.24M	227.14M	252.76M
Total Liabilities	371.74M	621.19M	798.95M	938.59M	1.29B	1.42B	1.76B	1.89B	2.74B	4.05B
Total Debt+	42.55M	39.59M	37.67M	35.43M	83.02M	72.4M	56.53M	43.96M	0	0
Net Debt	-644.78M	-528.33M	-821.52M	-614.52M	-1.03B	-820.82M	-564.29M	-627.74M	-1.94B	-2.76B
Debt / Equity	0.05x	0.04x	0.02x	0.02x	0.03x	0.02x	0.01x	0.01x	-	-
Debt / EBITDA	0.26x	0.15x	0.08x	0.12x	0.10x	0.10x	0.06x	0.03x	-	-
Net Debt / EBITDA	-3.96x	-2.01x	-1.67x	-2.04x	-1.23x	-1.12x	-0.58x	-0.39x	-0.83x	-0.92x
Interest Coverage	47.37x	77.62x	169.16x	101.20x	-	-	-	-	-	-
Total Equity+	788.15M	1.11B	1.66B	2.14B	2.89B	3.32B	3.98B	4.89B	7.22B	9.99B
Equity Growth %	0.42%	0.41%	0.5%	0.29%	0.35%	0.15%	0.2%	0.23%	0.48%	0.38%
Book Value per Share	0.69	0.95	1.32	1.66	2.24	2.61	3.12	3.86	5.69	7.80
Total Shareholders' Equity	788.15M	1.11B	1.66B	2.14B	2.89B	3.32B	3.98B	4.89B	7.22B	9.99B
Common Stock	7K	7K	7K	8K	8K	8K	31K	31K	125K	126K
Retained Earnings	250.92M	435.11M	859.11M	1.19B	1.79B	2.03B	2.46B	3.14B	5.11B	7.54B
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Accumulated OCI	-675K	-1.48M	-1.94M	-3.99M	143K	238K	-8.3M	-33.91M	-3.33M	-13.19M
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	200.53M	131.44M	631.63M	503.12M	963.03M	735.11M	1.02B	492.81M	2.03B	3.71B
Operating CF Margin %	0.24%	0.12%	0.38%	0.23%	0.4%	0.32%	0.34%	0.11%	0.35%	0.53%
Operating CF Growth %	0.75%	-0.34%	3.81%	-0.2%	0.91%	-0.24%	0.38%	-0.51%	3.13%	0.82%
Net Income	121.1M	184.19M	423.2M	328.12M	859.87M	634.56M	840.85M	1.35B	2.09B	2.85B
Depreciation & Amortization	13.67M	19.75M	20.64M	27.67M	32.85M	44.59M	50.33M	62.7M	70.63M	62.04M
Stock-Based Compensation	45.3M	59.03M	75.43M	91.2M	101.28M	137.04M	186.88M	230.93M	296.76M	355.36M
Deferred Taxes	-24.41M	-21.72M	8.43M	-57.9M	-75.74M	-9.14M	-99.29M	-244.38M	-370.8M	-492.87M
Other Non-Cash Items	-35.78M	-41.36M	1.45M	10.44M	3.98M	13.76M	43.96M	3.94M	-33.98M	-53.53M
Working Capital Changes	80.65M	-68.45M	102.48M	103.59M	40.8M	-85.69M	-6.88M	-912.82M	-15.92M	985.18M
Change in Receivables	-47.28M	-108.86M	5.77M	-77.92M	-60.21M	10.67M	-126.97M	-401.53M	-101.47M	-106.08M
Change in Inventory	-14.12M	-144.36M	-69.71M	51.05M	20.93M	-235.32M	-170.45M	-638.95M	-655.47M	110.61M
Change in Payables	9.04M	38.68M	-30.1M	39.34M	-1.94M	41.16M	66.68M	31.44M	198.61M	-51.63M
Cash from Investing+	184.17M	-325.98M	-392.58M	-755.11M	-284.07M	-608.8M	-925.56M	216.33M	-687.45M	-2.46B
Capital Expenditures	-19.99M	-21.42M	-15.28M	-23.83M	-15.75M	-15.38M	-64.74M	-44.64M	-34.43M	-32.03M
CapEx % of Revenue	0.02%	0.02%	0.01%	0.01%	0.01%	0.01%	0.02%	0.01%	0.01%	0%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	0	-204K	1.74M	0	0	0	1.3M	0	0	-6.63M
Cash from Financing+	63.1M	75.6M	51.47M	42.85M	-217.96M	-346.34M	-360.88M	-654.6M	-83.75M	-421.81M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	0	0	0	0	0	0	0	0
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	64.45M	41.76M	-4.03M	-8.88M	-9.2M	-8.72M	-16.48M	-32.73M	28.53M	1.81M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	180.54M	110.02M	616.35M	479.29M	947.28M	719.73M	951.12M	448.17M	2B	3.68B
FCF Margin %	0.22%	0.1%	0.37%	0.22%	0.39%	0.31%	0.32%	0.1%	0.34%	0.52%
FCF Growth %	0.78%	-0.39%	4.6%	-0.22%	0.98%	-0.24%	0.32%	-0.53%	3.46%	0.84%
FCF per Share	0.16	0.09	0.49	0.37	0.73	0.57	0.74	0.35	1.58	2.87
FCF Conversion (FCF/Net Income)	1.66x	0.71x	1.49x	1.53x	1.12x	1.16x	1.21x	0.36x	0.97x	1.30x
Interest Paid	3M	2.92M	2.81M	2.69M	0	0	0	0	0	0
Taxes Paid	6.59M	39.64M	44.22M	17.57M	32.83M	82.6M	189.77M	427.85M	686.15M	970.64M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	18.02%	19.43%	30.56%	17.25%	34.13%	20.42%	23.04%	30.51%	34.49%	33.14%
Return on Invested Capital (ROIC)	44.56%	50.51%	49.68%	17.31%	35.6%	24.04%	23.46%	29.86%	35.5%	35.3%
Gross Margin	64.9%	64.04%	64.5%	63.84%	64.06%	63.94%	63.8%	61.07%	61.95%	64.13%
Net Margin	14.46%	16.31%	25.71%	15.25%	35.67%	27.38%	28.52%	30.87%	35.62%	40.73%
Debt / Equity	0.05x	0.04x	0.02x	0.02x	0.03x	0.02x	0.01x	0.01x	-	-
Interest Coverage	47.37x	77.62x	169.16x	101.20x	-	-	-	-	-	-
FCF Conversion	1.66x	0.71x	1.49x	1.53x	1.12x	1.16x	1.21x	0.36x	0.97x	1.30x
Revenue Growth	43.4%	34.81%	45.79%	30.69%	12.05%	-3.87%	27.21%	48.62%	33.75%	19.5%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Product	-	-	-	1.84B	2.02B	1.83B	2.38B	3.72B	5.03B	5.88B
Product Growth	-	-	-	-	9.78%	-9.42%	29.87%	56.29%	35.34%	16.99%
Service	-	-	-	310.27M	389.56M	486.67M	570.31M	665.23M	830.67M	1.12B
Service Growth	-	-	-	-	25.55%	24.93%	17.19%	16.64%	24.87%	34.72%

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Americas	-	-	-	1.55B	1.83B	1.77B	2.16B	3.46B	4.65B	5.73B
Americas Growth	-	-	-	-	18.23%	-3.34%	21.68%	60.59%	34.33%	23.17%
EMEA	128.4M	168.79M	299.55M	414.07M	381.65M	326.73M	486.84M	529.8M	670.96M	713.17M
EMEA Growth	-	31.46%	77.47%	38.23%	-7.83%	-14.39%	49.00%	8.83%	26.64%	6.29%
Asia Pacific	62.27M	85.64M	154.35M	186.85M	195.89M	218.79M	305.02M	388.89M	538.01M	560.93M
Asia Pacific Growth	-	37.52%	80.24%	21.05%	4.84%	11.69%	39.41%	27.50%	38.35%	4.26%
UNITED STATES	634.41M	862.35M	1.17B	-	-	-	-	-	-	-
UNITED STATES Growth	-	35.93%	36.22%	-	-	-	-	-	-	-
Other Americas	12.51M	12.39M	17.58M	-	-	-	-	-	-	-
Other Americas Growth	-	-0.94%	41.94%	-	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Arista Networks, Inc. (ANET) has a price-to-earnings (P/E) ratio of 58.6x. This suggests investors expect higher future growth.

Growth & Financials

Arista Networks, Inc. (ANET) reported $8.45B in revenue for fiscal year 2024. This represents a 4268% increase from $193.4M in 2012.

Arista Networks, Inc. (ANET) grew revenue by 19.5% over the past year. This is strong growth.

Yes, Arista Networks, Inc. (ANET) is profitable, generating $3.36B in net income for fiscal year 2024 (40.7% net margin).

Dividend & Returns

Arista Networks, Inc. (ANET) has a return on equity (ROE) of 33.1%. This is excellent, indicating efficient use of shareholder capital.

Arista Networks, Inc. (ANET) generated $4.05B in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

US Stock Screener

...