ANETArista Networks
Is the business good?
A genuinely good business: earnings fully cash-backed (1.4×), margins widening, and elite returns on assets.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash.
Profits are tracking sales roughly one-for-one, limited operating leverage either way.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 28% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is ANET?
Arista Networks keeps 43% of every revenue dollar as operating profit, against 0.31% for the median Computer Hardware name.
Operating margin · Computer Hardware median 0.31% · 12 months to Q2 2026
- Cash conversion
- 1.44×
Cash conversion · 1.38× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.38%
Share count, year on year · flat: no meaningful dilution
- R&D as % of revenue
- 13%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | 30% |
| FY2021 | 31% |
| FY2022 | 35% |
| FY2023 | 39% |
| FY2024 | 42% |
| FY2025 | 43% |
Details›
- Gross margin12 months to Q2 2026
- 63%
- Operating margin12 months to Q2 2026
- 43%
- Net margin12 months to Q2 2026
- 38%
- Free cash flow margin
- 40%
- R&D as % of revenue
- 13%
- Revenue, trailing twelve months
- $10.5B
- Free cash flow, trailing twelve months
- $4.19B
- Net income, trailing twelve months
- $4.04B
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Computer Hardware
The closest names by size in the same industry