Arista Networks, Inc. carries no debt; cash flow comfortably covers obligations.

Arista Networks, Inc.'s free cash flow has increased 15.67% from $3.68B last year to $4.25B, signaling increasing performance

Arista Networks, Inc.'s debt to equity ratio is 0.00, which means that the company's assets are healthy financed, signaling financial stability.

Arista Networks, Inc. has insufficient data to evaluate this check.

Arista Networks, Inc. has a net cash position, so leverage is healthy.

Arista Networks, Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

Arista Networks, Inc.'s profit margin has decreased (5.78%) in the last year from 40.73% to 38.37%, signaling decreasing performance

Arista Networks, Inc.'s short-term assets of $16.39B exceed its short-term liabilities of $5.38B

Arista Networks, Inc.'s return on assets of 17.05% is higher than the 5.00% threshold, indicating efficient asset utilization

Arista Networks, Inc.'s return on equity of 30.78%, is higher than 15.00%, indicating good performance

Arista Networks, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Arista Networks, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Arista Networks, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Arista Networks, Inc. has a free cash flow yield of 1.76%, which is below the 2.00% threshold, indicating limited cash return relative to market value

Arista Networks, Inc.'s yearly earnings has increased 23.12% since last year from $2.85B to $3.51B, signaling increasing performance

Arista Networks, Inc.'s yearly revenue has increased 28.60% since last year from $7.00B to $9.01B, signaling increasing performance

ROIC 21.80% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Arista Networks, Inc.'s 3-year revenue CAGR of 27.15% is positive, indicating growing revenue over the past 3 years

Arista Networks, Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Arista Networks, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Arista Networks, Inc. is overvalued relative to its fair value price of 61.50 based on Discounted Cash Flow model

Arista Networks, Inc. has an earnings yield of 1.68%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Arista Networks, Inc. is overvalued relative to its fair value price of 23.40 based on EBITDA multiple model

Arista Networks, Inc. has an EV/EBITDA ratio of 53.31x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Arista Networks, Inc. is overvalued relative to its fair value price of 56.74 based on Earnings Fair Value model

Arista Networks, Inc. has a PEG-ratio over 1 which is considered overvalued

Arista Networks, Inc. has a price-to-book ratio of 16.29x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Arista Networks, Inc. has a price-to-sales ratio of 22.87x, which exceeds the 8.00x threshold, indicating the stock may be overvalued relative to its revenue